Successfully reported this slideshow.

# 1. You are an office assistant for the Danbury Drop-In Clinic, a.docx

1. You are an office assistant for the Danbury Drop-In Clinic, a walk-in healthcare clinic in Danbury, Connecticut. Daniel Boyette, the owner of the clinic, wants to expand by adding other clinic locations in Danbury. Whether he leases new space or merges with another clinic, he needs a loan to cover the cost of the clinics. He has asked for your help updating the workbook he created to analyze the loan information and forecast sales.

Switch to the
Loan Scenarios
worksheet, and then calculate the monthly payment for the Add 1 Location scenario as follows:

a. In cell D10, enter a formula using the
PMT
function to calculate the monthly payment for a loan.

b. Use the inputs listed under the Add 1 Location loan scenario in cells
D4
,
D6
, and
D8
. (
Hint
: The result will be displayed as a negative number to reflect the negative cash flow of a loan payment.)

2. Calculate the monthly interest rate for the Add 2 Locations scenario as follows:

a. In cell E6, enter a formula using the
RATE
function to calculate the monthly interest rate for a loan.

b. Use the inputs listed under the Add 2 Locations loan scenario in cells
E8
,
E10
, and
E4
. (
Hint
: Assume the present value of the loan is the loan amount shown in cell E4.)

3. Calculate the loan amount for the Add 3 Locations scenario as follows:

a. In cell F4, enter a formula using the
PV
function to calculate the loan amount.

b. Use the inputs listed under the Add 3 Locations loan scenario in cells
F6
,
F8
, and
F10
.

4. Calculate the number of months Daniel needs to pay back a loan for an existing clinic as follows:

a. In cell G8, enter a formula using the
NPER
function to calculate how many months it would take to pay back a \$450,000 loan.

b. Use the inputs listed under the Merger loan scenario in cells
G6
,
G10
, and
G4
.

5. Switch to the
Amortization
worksheet. Calculate the cumulative interest for a loan for one new clinic location as follows:

a. In cell C16, enter a formula using the
CUMIPMT
function to calculate the cumulative interest paid on the loan after the first year (payment 1 in cell
C14
through payment 12 in cell
C15
) when the payments are made at the end of the period. Use
0
as the type argument in your formula.

b. Use absolute references for the rate, nper, and pv arguments.

c. Use relative references for the start and end arguments.

d. Copy the formula from cell C16 to the range D16:G16 to calculate the interest paid in Years 2–5.

6. Calculate the cumulative principal for a loan for one new clinic location as follows:

a. In cell C17, enter a formula using the
CUMPRINC
function to calculate the cumulative principal paid in the first year (payment 1 in cell
C14
through payment 12 in cell
C15
) when the payments are made at the end of the period. Use
0
as the type argument in your formula.

b. Use absolute references for the rate, nper, and pv arguments.

c. Use relative references for the start and end arguments.

d. Copy.

1. You are an office assistant for the Danbury Drop-In Clinic, a walk-in healthcare clinic in Danbury, Connecticut. Daniel Boyette, the owner of the clinic, wants to expand by adding other clinic locations in Danbury. Whether he leases new space or merges with another clinic, he needs a loan to cover the cost of the clinics. He has asked for your help updating the workbook he created to analyze the loan information and forecast sales.

Switch to the
Loan Scenarios
worksheet, and then calculate the monthly payment for the Add 1 Location scenario as follows:

a. In cell D10, enter a formula using the
PMT
function to calculate the monthly payment for a loan.

b. Use the inputs listed under the Add 1 Location loan scenario in cells
D4
,
D6
, and
D8
. (
Hint
: The result will be displayed as a negative number to reflect the negative cash flow of a loan payment.)

2. Calculate the monthly interest rate for the Add 2 Locations scenario as follows:

a. In cell E6, enter a formula using the
RATE
function to calculate the monthly interest rate for a loan.

b. Use the inputs listed under the Add 2 Locations loan scenario in cells
E8
,
E10
, and
E4
. (
Hint
: Assume the present value of the loan is the loan amount shown in cell E4.)

3. Calculate the loan amount for the Add 3 Locations scenario as follows:

a. In cell F4, enter a formula using the
PV
function to calculate the loan amount.

b. Use the inputs listed under the Add 3 Locations loan scenario in cells
F6
,
F8
, and
F10
.

4. Calculate the number of months Daniel needs to pay back a loan for an existing clinic as follows:

a. In cell G8, enter a formula using the
NPER
function to calculate how many months it would take to pay back a \$450,000 loan.

b. Use the inputs listed under the Merger loan scenario in cells
G6
,
G10
, and
G4
.

5. Switch to the
Amortization
worksheet. Calculate the cumulative interest for a loan for one new clinic location as follows:

a. In cell C16, enter a formula using the
CUMIPMT
function to calculate the cumulative interest paid on the loan after the first year (payment 1 in cell
C14
through payment 12 in cell
C15
) when the payments are made at the end of the period. Use
0
as the type argument in your formula.

b. Use absolute references for the rate, nper, and pv arguments.

c. Use relative references for the start and end arguments.

d. Copy the formula from cell C16 to the range D16:G16 to calculate the interest paid in Years 2–5.

6. Calculate the cumulative principal for a loan for one new clinic location as follows:

a. In cell C17, enter a formula using the
CUMPRINC
function to calculate the cumulative principal paid in the first year (payment 1 in cell
C14
through payment 12 in cell
C15
) when the payments are made at the end of the period. Use
0
as the type argument in your formula.

b. Use absolute references for the rate, nper, and pv arguments.

c. Use relative references for the start and end arguments.

d. Copy.