Brenau Wk4 Excel Goal Seek On Break Even Points Questions Discussion Please refer to the document below and follow the instructions within. An excel file i

Brenau Wk4 Excel Goal Seek On Break Even Points Questions Discussion Please refer to the document below and follow the instructions within. An excel file is also linked below that you will use to complete the activity. Here is a video to guide you through the discussion assignment. Once you report your findings, please consider these summative questions

1) Where can you utilize goal seek in your professional and personal life?

2) What do you see as the most substantial benefits of the goal seek function? What do you see a the biggest detractors? Why?

3. answer question on the homework assignment

link to video- QkFoYkIxc0hhUVE1YzlJQ01Hd3JCelVDMkY0PS0tZWQ5MjUzMDA5MGI4MWM0ZWU5MDc5Zjc3NzgyZDhjNjFjNjUzZDc1Yw.mp4 Week 4 Discussion 1
Goal Seek Assignment
June 1, 2020
After completing the goal seek assignment for the changed interest rate these were my findings.
•
60 months with an interest rate of 2.773% and a breakeven payment of $409.74
•
120 months with an interest rate of 3.458% and a breakeven payment of $447.85
•
180 months with an interest rate of 4.621% and a breakeven payment of $514.58
•
240 months with an interest rate of 7.00% and a breakeven payment of $665.97
After completing the goal seek assignment with the changed number of payments these were my
findings.
•
60 months with 30.32 payments per year and a breakeven payment of $409.88
•
120 months with 24.30 payments per year and a breakeven payment of $447.87
•
180 months with 18.22 payments per year and a breakeven payment of $514.78
•
240 months with 12.12 payments per year and a breakeven payment of $665.02
During the 5 to 20 year span this affects the interest rate and the breakeven payment by
increasing when the terms increase in the loan. With the current economy I believe the results
involving the interest rate are realistic. However, with the change of payments increasing I
believe it is unrealistic with our current economy. My reasons are because many people are
finding it hard to pay their current mortgage due to Covid-19 causing layoffs. Therefore an
increase would be very hard right now.
After completing the goal seek assignment with 7.00% interest and extra principle to pay off
early these were my findings.
•
300 months with an extra principle of $221.48 results in a surplus of $79733.65 and
$12630.38 interest saved.
•
240 months with an extra principle of $472.90 results in a surplus of $170243.72 and
$45064.73 interest saved.
•
180 months with an extra principle of $818.33 results in a surplus of $294600.44 and
$91463.45 interest saved.
•
120 months with an extra principle of $1421.53 results in a surplus of $511750.40 and
$147712.71 interest saved.
After completing the goal seek assignment with 6.00% interest and extra principle to pay off
early these were my findings.
•
300 months with an extra principle of $205.13 results in a surplus of $73846.02 and
$9915.92 interest saved.
•
240 months with an extra principle of $449.10 results in a surplus of $161675.61 and
$35878.99 interest saved.
•
180 months with an extra principle of $788.49 results in a surplus of $283857.94 and
$73734.53 interest saved.
•
120 months with an extra principle of $1388.56 results in a surplus of $499882.54 and
$120406.84 interest saved.
With these payments in mind, I believe they are unrealistic for the majority of mortgage holders.
It surely would be a nice goal, but I know I would not be able to afford to make that much extra
on my current payment. I do think it might be possible to be able to afford the lowest amount in
extra principle for some average mortgage holders. The difference between the 7% and 6% is
only around $16 to $33 a month, but up to $27,305 in savings throughout the loan. That is a huge
savings in the long run.
I believe I could use goal seek in my personal life to help give me a better idea and paying off
some loans faster that scheduled. I can only hope to be out of debt one day, but at least I might
not be swimming in it. The most substantial benefit of the goal seek function would be to give
you a better understanding on how a loan comes to term and the best way to pay it off. Being
able to comprehend your possibilities can give you a head start in paying off debt. As far as a
detractor, I think it might be hard to grasp without a little help and it might give someone
unrealistic goals. Without this class I don’t think I would have been able to figure out how to use
it correctly.

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