Account Excel

Download as xlsx, pdf, or txt
Download as xlsx, pdf, or txt
You are on page 1of 5

You have the below list of debts.

Creditor APR Balance Minimum Payment Priority


Discover Card 19.99% $ 2,000.00 $ 50.00 3
Bank Loan 6.99% $ 4,000.00 $ 100.00 5
Apple Store 24.99% $ 750.00 $ 30.00 1
Best Buy 21.99% $ 1,200.00 $ 40.00 2
Target 14.99% $ 400.00 $ 25.00 4

You have $500 a month of income that can be fully used to payoff debts.

Your Objective: Be debt free as quickly as possible, minimize the total amount of interest you wi
1. Complete the entire yellow section of the worksheet 'Payoff Strategy' to show how you would
2. Complete the yellow section above to show the order in which you prioritized the debts, and h

Hints:
1. First, determine the order in which you should pay off the debts, considering your objective. Ce
2. Fill in rows 4, 5, and 6 of the payoff strategy with the information for each of the debts.
3. Fill in the associated minimum payment for Month 1 for all the debts, except priority 1.
4. Determine how much can be paid to Priority 1 Debt.
5. Calculate the interest you will pay for each debt. Formula: Interest = Prior Balance * (APR/12)
6. Calculate the new balance for each debt. Formula: New Balance = Prior Balance - Payment + In
7. Repeat for each month until debt 1 is paid off.
8. Now calculate the new payment amount for Debt 2.
9. Calculate the interest you will pay for each of the remaing debts. Formula: Interest = New Balan
10. Calculate the new balance for each debt. Formula: New Balance = Prior Balance - Payment + I
11. Repeat the process until Debt 2 is paid off.
12. Now calculate the payment for Debt 3.
13. Continue for all debts until all are payed off.
14. Fill in # of payments made for each of the debts above. Cells F4 through F8.
# of payments made
12
19
3
7
12

otal amount of interest you will pay.


ategy' to show how you would pay each creditor from now until all debts are paid off.
you prioritized the debts, and how long it took to pay off each debt.

considering your objective. Cells E4 through E8.


n for each of the debts.
ebts, except priority 1.

est = Prior Balance * (APR/12)


e = Prior Balance - Payment + Interest

Formula: Interest = New Balance * (APR/12)


ce = Prior Balance - Payment + Interest

4 through F8.
are paid off.
Strategy 1: Reduce the total amount of interest paid.

Priority 1 Debt Priority 2 Debt Priority 3 Debt


Name Apple Store Best Buy Discover Card
Starting Balance $750.00 $1,200.00 $2,000.00
APR % 24.99% 21.99% 19.99%
Month Payment Interest Balance Payment Interest Balance Payment Interest Balance
1 285 2.08% 480.75 40 1.83% 1181.99 50 1.67% 1983.32
2 285 2.08% 205.76 40 1.83% 1163.65 50 1.67% 1966.36
3 210.05 2.08% 0 114.95 1.83% 1070.02 50 1.67% 1949.12
4 325 1.83% 714.63 50 1.67% 1931.59
5 325 1.83% 402.73 50 1.67% 1913.77
6 325 1.83% 85.11 50 1.67% 1895.65
7 86.67 1.83% 0 288.33 1.67% 1638.9
8 375 1.67% 1291.2
9 375 1.67% 937.71
10 375 1.67% 578.33
11 375 1.67% 212.96
12 216.51 1.67% 0
13
14
15
16
17
18
19
20
21
22
23
24
Priority 4 Debt Priority 5 Debt
Target Bank Loans
$400.00 $4,000.00
14.99% 6.99%
Payment Interest Balance Payment Interest Balance
25 1.25% 380 100 0.58% 3923.3
25 1.25% 359.75 100 0.58% 3846.15
25 1.25% 339.24 100 0.58% 3768.55
25 1.25% 318.48 100 0.58% 3690.5
25 1.25% 297.46 100 0.58% 3612
25 1.25% 276.18 100 0.58% 3533.04
25 1.25% 254.63 100 0.58% 3453.62
25 1.25% 232.81 100 0.58% 3373.74
25 1.25% 210.72 100 0.58% 3293.39
25 1.25% 188.35 100 0.58% 3212.57
25 1.25% 165.7 100 0.58% 3131.28
167.77 1.25% 0 115.72 0.58% 3033.8
500 0.58% 2551.47
500 0.58% 2066.33
500 0.58% 1578.37
500 0.58% 1087.56
500 0.58% 593.9
500 0.58% 97.36
97.93 0.58% 0

You might also like