Solved Assignments and Essays for Business Studies | Desklib

Running head: BUSINESS STUDIES
Business Studies
Name of Student:
Name of University:
Author’s Note:

1BUSINESS STUDIES
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Question 4........................................................................................................................................7
Question 5......................................................................................................................................10
Reference.......................................................................................................................................14

2BUSINESS STUDIES
Question 1
1.a At first, we need to identify the monthly payment to be made as per the current conditions.
The loan repayment is being done for 25 years. The monthly is pay computed by using the PMT
function. This is computed as PMT (3.90%/12, 300, -487500).
1.b John’s monthly payments for each quarter needs to be considered as per the increase in the
interest rate of BoE by 4%. At a rate of 40.076%, Jeff will no longer be able to make the monthly
payment. The computation for the monthly payment has been considered with a cumulative
increase 0.25% on the initial repayment amount. The last monthly payment is assed with
multiplying 1.0025 with the 188th repayment amount of £ 4071.78.

3BUSINESS STUDIES
1.c It is seen that Jeff cannot exceed the monthly payment of £ 3200 for the mortgage. This needs
to be repaid with a total of 211 payments. In a similar way the monthly payment amount is
calculated by using the PMT function.