The Calculated Monthly Payment on a Loan Amortized Over 10

question 144

Essay

The calculated monthly payment on a loan amortized over 10 years is rounded down by 0.3 cents to get to the nearest cent.
a) Will the adjusted final payment be more than or less than the regular payment?
b) Will the difference between the regular and the final payment be (pick one):
(i) more than (ii) less than or (iii) equal to 0.3 cents? 120 = 36 cents? Explain.

Learn to round numbers, including times to the nearest specified interval, and understand rounding functions (ROUND, ROUNDDOWN, ROUNDUP).

Know how to control the calculation options in Excel, including manual and automatic updates of formulas.

Understand how to use the COUNT function and its variations to count cells based on different criteria.

Learn the application of conditional formatting and its management, including removing rules.

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Definitions:

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often leading to higher prices and restricted supply.

Marginal Cost

The hike in overall financial outlay due to producing an extra unit of a product or service.

Total Industry Profit

The cumulative profit earned by all companies operating within a specific industry.

Cartel

An association of manufacturers or suppliers that maintains prices at a high level and restricts competition by controlling the production and distribution of a product or service.