# Financial Error Analysis

For this assignment, you will analyze three questions that have been solved by a student. Each example has one error in the solutions. Copy and paste the questions into the discussion board and write a note to the student of what the error is for each example. When correcting each student, be specific as to what was wrong for each case. Example 1: Complete the first month’s charges and find the balance for Month 2. The APR is 15.99% with a minimum payment of 5%. The carry-over balance is \$500. Student Answer: Month Carry-Over Balance Finance Charge New Balance Minimum Payment 1 \$500 \$6.66 \$506.66 \$25.33 2 \$474.67 XXXXXXXX XXXXXXX XXXXXXXXX Example 2: What exact excel formula is needed to find the monthly payment for a house that costs \$90,000? The APR is 4.5% for a 30-year loan. Student Answer: =PMT(4.5/12,30*12,-90000) Example 3: Using Excel, what formula is needed to find the total loan amount for a new car? You can spend \$180 each month on payments and the loan rate is 5.72% for 4 years. Student Answer: =PV(.0572/12,4/12,-180) **MUST PLEASE USE EXCEL FOR ASSIGNMENT**

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