Exploring Series Vol. 2, Chapter 7, IRCD Motorcycle Purchase

Exploring Series Vol. 2, Chapter 7, IRCD Motorcycle Purchase Project

In this project, you will filter and analyze data based on multiple criteria, and then calculate the payments for a loan on a new motorcycle purchase. You are required to perform specific tasks in Excel, including inserting functions, performing filters, and constructing a loan amortization table. The tasks involve using nested IF functions, averaging with criteria, finding minimum values with criteria, applying advanced filters, calculating loan payments, and creating an amortization schedule with interest and principal calculations. You will also compute total interest paid over the life of the loan using the CUMIPMT function. After completing the steps, you will save, close, and submit the workbook as directed.

Paper For Above instruction

The project outlined from the Exploring Series Vol. 2, Chapter 7, IRCD Motorcycle Purchase Project is a comprehensive exercise in data analysis, financial calculations, and advanced Excel functionalities. Its primary aim is to develop proficiency in filtering and analyzing data based on multiple criteria, as well as understanding the intricacies of loan calculations relevant to a motorcycle purchase scenario. This task not only enhances technical skills but also offers practical insights into financial decision-making and data management within a business context.

The initial step involves working with an Excel workbook, specifically the Exploring_e07_Grader_IRCD.xlsx file. Students are instructed to insert a nested IF statement in cell G4 on the Database worksheet. This function assesses whether the first motorcycle model listed was manufactured after 2002 and has less than 30,000 miles. If both conditions are true, the function returns "Possibility"; otherwise, it returns "No chance." This task emphasizes understanding logical functions and their application in evaluating multiple conditions simultaneously. It demonstrates critical thinking, as students must correctly structure the nested IFs to ensure accurate results.

Copying this function down through G14 allows students to assess multiple records efficiently, reinforcing their understanding of relative referencing and copy-paste functions in Excel. The next task requires calculating an average sales price in cell E19 based on specific criteria stored in cells D19 and D20. This operation utilizes the AVERAGEIFS function, which filters the data dynamically based on criteria such as model year or mileage, enabling targeted analysis of the dataset. Similarly, in cell G19, students are asked to determine the lowest sales price over $7,000 with criteria defined in cells F19 and F20 using the MINIFS function, illustrating the importance of data filtering for financial insights.

An advanced filter is then applied to extract motorcycles manufactured in 2007 or 2008. This involves setting criteria in a designated range (C18:C20) and filtering the database in-place. Mastery of advanced filtering enhances the ability to handle large datasets efficiently, a vital skill in business analytics. Transitioning to financial calculations, students then analyze a specific motorcycle purchase—a 2008 Harley-Davidson—that costs $7,200, with a loan amount of $5,760 for one year. In cell B6 of the Payments sheet, a PMT function is entered to compute the monthly payment based on loan details provided in B3:B5, exemplifying amortization calculation techniques.

Subsequent steps require calculating interest payments and principal payments in cells E10 and F10, respectively, using the IPMT and PPMT functions. These include references to the loan's entire details, with absolute cell referencing ensuring consistency across calculations. Deducting the principal payment from the beginning balance computes the remaining balance, which is then linked to subsequent periods to create an amortization schedule. Copying formulas down through subsequent rows completes the table, illustrating the breakdown of interest and principal over the loan's duration.

Finally, a cumulative interest payment over the entire loan period is calculated using the CUMIPMT function in cell B7, providing a comprehensive view of total interest expenditure based on the loan terms. After performing all required tasks, the student must save the workbook, close the file, and submit it as instructed for grading.

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