Excel Functions and Amortization Concepts

This video tutorial by Kevin Kimble, an associate professor of accounting at BYU Hawaii, guides viewers through creating a fixed payment mortgage amortization schedule using Microsoft Excel. It covers setting up a data section for input variables, creating formulas for calculating payments, and formatting the Excel sheet for clarity and professionalism. The tutorial emphasizes the importance of using range names and absolute references in Excel to ensure accurate calculations. By the end of the video, viewers should be able to create a mortgage payment calculator and amortization schedule from scratch.

What is the primary purpose of this tutorial?

• To teach how to create a fixed payment mortgage amortization schedule.

• To explain the history of mortgages.

• To provide an overview of Excel's features.

• To discuss the benefits of renting vs. buying a home.

Which of the following is NOT a variable input in the data section?

• Down payment percentage

• Home price

• Loan amount

• Monthly utility bills

What Excel function is used to calculate the monthly payment?

• SUM

• PMT

• AVERAGE

• VLOOKUP

In setting up the amortization schedule, what is the starting month number?

• 360

• 12

• 1

• 0

What is the difference between absolute and relative references in Excel?

• Absolute references change when copied, relative references do not.

• Relative references change when copied, absolute references do not.

• Both change when copied.

• Neither change when copied.

Which formatting option is used to display currency in the Excel sheet?

• Accounting

• General

• Text

• Percentage

What function is used to display today's date in the Excel sheet?

• DATE()

• TIME()

• TODAY()

• NOW()