C268 Practice Exam Questions and Answers 2023/24

C268 PRACTICE EXAM QUESTIONS AND ANSWERS 2023/24 [DATE] C268 Practice Exam Questions and Answers 2023/24 1. Calculate the payment amount for the loan in cell C15. Reference the cells containing the appropriate loan information as the arguments for the function you use. Cells C20-C67 in the "Payment" column are populated with the payment amount from cell C15. [34 Points] CORRECT ANSWER: -=PMT(Rate/#months of term,LoanAmt) Answer- =PMT(C13/12,C12,C11) 2. Calculate, in cell D20, the interest amount for period 1 by multiplying the balance in period 0 (cell F19) by the loan interest rate (cell C13) divided by 12. Dividing the interest rate by 12 results in the monthly interest rate. This formula is reusable. The interest for a given period is always the monthly interest rate times the balance from the previous period. CORRECT ANSWER: -=F19*$C$13/12 3. Calculate, in cell E20, the principal amount for period 1. The principal amount is the difference between the payment amount (cell C20) and the interest amount (cell D20) for period 1. Construct your formula in such a way that it can be reused to complete the "principal" column of the amortization table. CORRECT ANSWER: -=C20-D20 4. Calculate, in cell F20, the balance for period 1. The balance is the difference between the balance for period 0 (cell F19) and the principal amount for period 1 (cell E20). This formula is reusable. The balanceis always calculated as the difference between the balance from the previous period and the principal amount for the current period. CORRECT ANSWER: -=F19-E20 5. Calculate, in cell G12, the total amount paid by multiplying the payment amount (cell C15) by the term of the loan (cell C12). CORRECT ANSWER: -=C15*C12 6. Calculate the total interest paid in cell G13. The total interest paid is the sum of all interest paid in the "Interest" column of the amortization table. CORRECT ANSWER: -=SUM(D20:D67) 7. Check to see if the total interest calculation in the amortization table is correct. The total interest paid is also equal to the difference between the total amount paid over the course of