Exercise 2

Complete ONE of the following application exercises to complete from the text  Information Systems Today: Managing the Digital World:

OPTION 1: Spreadsheet Project:

· 6-42 Spreadsheet Application: Travel Loan Facility (page 268)

· Follow the directions in the text

· There is NO starting data file for this option. You will build an Excel workbook from scratch.

· Submit the completed Microsoft Excel spreadsheet (.xlsx) as the final deliverable.

Spreadsheet Application: Travel Loan Facility

1. 6-42. A new aspect of the business has been added to Campus Travel. Students can apply for a loan to help pay for their travels. However, loans for travel are available only to students who are traveling outside the country for at least 2 weeks. Because the costs for this type of international travel differ depending on how you travel, where you stay, and what you do at the destination, different loan packages are available. For a month in Europe, you have decided to take out a loan. You have already taken a look at several offers but are unsure whether you can afford it. Set up a spreadsheet to calculate the payments per month for the following situations:

1. • 2 weeks in Eastern Europe; price: US$2,000; interest rate: 5.5%; Time: 1 year

2. • 2 weeks in Western Europe; price: US$3,000; interest rate: 6.0%; time: 1 year

3. • 3 weeks in Western Europe; price: US$3,500; interest rate: 5.5%; time: 2 years

4. • 4 weeks in Eastern Europe; price: US$4,000; interest rate: 6.0%; time: 2 years

5. • 4 weeks in Western Europe; price: US$5,000; interest rate: 6.5%; time: 2 years

Once you have calculated the payments, calculate the total amount to be paid for each option as well as the total interest you would pay over the course of the loan. Make sure to use formulas for all calculations and submit a professionally formatted page displaying the results and a page displaying the formulas. (Hint: In Microsoft Excel, use the “PMT” function in the category “Financial. ") to calculate the payments. Use Ctrl+` [grave accent] to switch between formula and data views; calculate the number of payments before using the formula.)

Reference

Valacich, J. S., & Schneider, C. (2022). Information systems today: Managing in the digital world (8th ed.). Pearson.