Microsoft Excel 3E: Templates: Interest Calculations and Cash Flow, Total Interest on Loan

Loan Interest Templates:

• Spreadsheets are commonly used to calculate loans.
• You can use them to calculate the payements on various loan amounts over different lengths of time at different rates.
• You can also use it to calculate how much interest you pay in total for a loan or how much you might save with different options.
• In this lesson you will be using a loan interest spreadsheet that has already been made for you with the appropriate formulas to answer various questions.
• In the next section, section 4, you will actually learn how to construct the formulas to build such a spreadsheet from scratch.

Cash Flow Templates:

• Many businesses that start up require a lot of cash for start up expenses.
• Advertising in the yellow pages and the cost of other promotions may be initially very expensive.
• Wage costs may also be high in the beginning as employees need to be trained and are not as efficient. In addition to this there are a lot of other start up costs.

• Sales may also be very slow as a business doesn't have many customers to begin with.
• Many small businesses continually lose money for several months after opening.

• Breakeven point is when a business is no longer losing money (it is just breaking even).
  • The key to starting a business is to have enough money to get you through to the breakeven point before the business goes bankrupt.
  • Many businesses would have been very successful had they only been able to hang on a couple more months.
• If a business runs out of money, they can't purchase merchandise or pay their employees and must shut down.

 

• A cash flow spreadsheet is very useful at estimating how much money is needed each month and anticipating the future.
  • You can continually change the estimates in a cash flow budget and plan for any cash shortages long before they happen.
  • In this assignment you will be using a cash flow budget that has already been created with formulas. You will enter in various numbers to calculate different scenerios.