Reference no: EM132412631

RETIRING STUDENT LOAN DEBT -

You have just started a new job with a significant increase in salary above what you were earning when you originally negotiated your student loan repayment. The salary increase affords you the opportunity of increasing your monthly loan payments, thereby allowing you to retire the debt sooner than originally planned. You have six years remaining in the original payback plan on a loan of $55,000, with an interest rate of 2.4% and a monthly payment of $566.74. With your new salary, you can afford a monthly payment of $672. You also will be eligible for end-of-year bonuses.

PART 1: Use the concepts and techniques that you have learned throughout the semester to create a worksheet containing a loan calculator and an amortization schedule. Determine how soon you can retire the student loan debt with the new higher monthly payments. Assuming that you earn yearly bonuses of $6,000 at the end of each year, when could you pay off the remaining balance on your student loan if you kept the lower monthly payment?

PART 2: Would you opt for increasing your monthly payment, or using any earned bonus money to retire the debt early? Explain the reason for your choice.

PART 3: Create a PowerPoint presentation in which you summarize the spreadsheet and your decisions based on the spreadsheet. Choose your design, layout, font size, colors, and number of slides for the presentation. Please remember that PowerPoint is a visual and NOT a Word document.

Considerations: Assume this is a fixed rate loan.

Most loans do not penalize for pre-payment.

In order to arrive at your answers, you will need to determine the following:

A. Number of years for the original loan. There is a financial function that will help you obtain this information. To locate it, select the Formulas tab, click on Insert Function in the Function Library section. In the pop-up, type a brief description of what you want to do in the box provided, and then click Go. Once you select the appropriate function, specify the required parameters.

B. Amortization schedule of the original loan. You will need to provide the Principal and Interest portion for each period (month). Follow the same steps specified in A above to locate the necessary functions. Please note that, as time goes on, the principal amount paid in each period (month) will increase while the interest amount paid will decrease. The principal portion plus the interest portion will always equal the total amount paid on each period (month).

C. Amount of loan still owed. You can obtain this from the amortization table of the original loan and the information provided of the current period (month) of the loan.

D. Period (month) on which you will complete paying the loan, based on the new payment amount. You may either develop an adjusted amortization schedule for the remaining payments, or find a function that provides the number of periods based on the remaining amount in the loan, the fixed interest rate, and the new monthly payments. Follow the same steps specified in A above to locate any functions you may need.

E. Apply the annual bonus to the loan payments. Please follow prior steps to determine the impact of using your annual bonus to accelerate the payment of your loan.

Business Strategy Presentation -

You have a brief, compact 5-minute presentation due in your Business Strategy class. You just learned that PowerPoint offers numerous templates, so you thought you'd start with a template, if an appropriate one is available, and build on it. You've asked Connie Mathery, your manager in your work-study position in the registrar's office, to take a look at the presentation and offer her feedback. Your 5-minute presentation should go much more smoothly with a PowerPoint file to lead you through the important points that you want to verbalize.

Design Template

a. Create a new presentation, and type strategy in the Search box to locate an appropriate template. Select and open the Business strategy presentation. Save the file as p02_exam_chap_LastFirst.

b. Replace the title text with Business Strategy on Slide 1. Replace the subtitle with The Importance of Having a Vision with your first name and last name on the following line.

c. Delete Slides 3-7.

Outline Modifications

d. Open Outline view, and replace the title of Slide 2 with Important Aspects of Having a Vision.

e. Type each of the following as Level 1 bullets (without the commas): Be concise, Be clear, Be passionate, Be organized, Be flexible.

f. Change the font size of the content placeholder to 32 pt. and add the following speaker note: Briefly describe each of these and use an example to emphasize the importance of each bullet.

Imported Outline

g. Return to Normal view and, with Slide 2 selected, import the outline of the file p02_exam_chap_data1.

h. Change the title font of Slides 3 and 4 to Century Gothic, 36 pt., and bold.

i. Change the content placeholder font to Palatino Linotype, 32 pt., and color Black, Text 1.

j. Change the second level bullets on both slides to 28 pt. font.

k. Reuse Slides 1, 2, and 3, in that order, from file p02_exam_chap_data2. Do not keep source formatting.

l. Format Slide 5 the same as Slide 4, making any changes that are needed.

m. Format the title on Slide 6 the same as previous slides. Turn off the bullet in the right content placeholder, turn off bold, and align the top of the placeholder box to the top of the SmartArt image.

n. Move Slide 6 to become Slide 5.

Design

o. Change the layout of Slide 7 to Content with Caption.

p. Click the Online Pictures icon and use Vision in the Search box to locate an appropriate image. Insert the image and resize, if necessary, to fit appropriately on the right side of the slide.

q. Type Vision as the text in the title placeholder.

r. Type Of great importance in business strategy! in the text placeholder. Increase the font to 28 pt.

s. Add Grow & Turn animation to the image on Slide 7.

t. Change the five second-level bullets on Slide 3 to Sentence case.

Sections

u. Add a section before Slide 5 and rename it Building a Vision

v. Print the outline as directed by your instructor. Be sure to navigate through your presentation.

w. Save and close the file. Based on your instructor's directions, submit files p02_exam_chap_LastFirst.

Attachment:- Assignment Files.rar