Question

Calculate the loan balance for each of the six months. The loan balance is calculated as the additional cash needed for a given month minus any cash used to retire debt for that month plus the loan balance carried from the prior month.

Answer 1

Answer:

The closing balance from the excel sheet is $5,000.00

Explanation:

Solution

Given that:

The loan balance required l for each month can be computed  as follows:

The loan balance = additional cash needed – cash used to retire debt + loan balance from previous month

Now

By applying the excel formula to perform this task is stated as follows:

D34 = SUM(D31-D33,C34)

The same formula is used to get the values for E34 to I34.

Kindly find an attached copy  of the updated excel sheet after applying above formula which is a part of the solution is as follows: