PROJECT 2 – MORTGAGE CALCULATOR
Due Date: Midnight, Friday 21 September 2018 Weighting: 30%
Type: Individual
Submission: Electronic Submission via AUT Online
Instructions for the Project
Students are required to build a mortgage calculator in Excel 2016. The calculator should have the following features:
- It should be capable of calculating the maximum amount a home-buyer can borrow, based on the user’s choice of preferred output. The appropriate inputs should include but not limited to: family incomes and assets, living expenses and debts, and regulations on deposit of residential property loan.
- It should allow users to calculate the value of the outputs based on one of three different types of mortgage
o Normal Mortgage
o Growing Annuity Mortgage (payments grow at a constant rate overthe life of the mortgage aka a growing annuity)
o Interest Only Mortgage (payments cover only the interestcomponent until the final payment which covers the entire principle
of the mortgage)
- The calculator should be capable of dealing with payments occurring over
varying payment frequencies
- The calculator should contain an amortisation table with at a minimum the
following columns (payment, interest component of the payment, principle
component of the payment and principle balance)
- The calculator should be capable of dealing with items such as loan
processing fee/low equity margin.
- The calculator should contain a graph breaking down payments
- The calculator should follow the rules of good financial model design.
Students are expected to be able to explain or demonstrate any features or techniques in their assignments if requested.
Marking Criteria
To receive a C Grade, students must ensure their calculator meets the following requirements:
Calculation |
|
Layout |
• Calculator conforms to the following rules of good design o Clear separation of inputs and outputs |
Excel Features |
• Calculator will at a minimum include suitable Excel control features i.e. radio boxes, combo boxes etc |
To receive a B Grade, students must ensure their calculator meets the following requirements:
Calculation |
|
Layout |
• Calculator conforms to the following rules of good design o Clearseparationofinputsandoutputs |
Excel Features |
• Calculator will at a minimum include: etc) |
To receive an A Grade, students must ensure their calculator meets the following requirements:
Calculation |
|
Layout |
• Calculator conforms to the following rules of good design o Clearseparationofinputsandoutputs o SuitableSummariesareprovided |
Excel Features |
• Calculator will at a minimum include: etc) |