Revision Lecture 5

                        A chartered bank is lowering the interest rate on its loans from 9% to 7%.

      What will be the percent decrease in the interest rate on a given balance?

                  A chartered bank is increasing the interest rate on its loans from 7% to 9%

                  What will be the percent increase in the interest rate on a given balance?

As we learnt in lecture 5, the calculation will be as follows:

Decrease in interest rate = 7-9 = -2 %

% decrease = -2/9 x 100 = -22.2 %

Increase in interest rate = 9-7 = 2 %

% decrease = 2/7 x 100 = 28.6 %

 The calculations in Excel are shown in the following slides:

 DECREASE IN RATE

Data entry in percentage

Cell F4 = 9

Cell F5 = 7

 Formulas        

Formula for decrease in Cell F6: = =F5-F4

Formula for % decrease in Cell F7: =F6/F4*100

 Results in percentage 

Cell F6 = -2

Cell F7 = -22.2

 INCREASE IN RATE

Data entry in percentage

Cell F14 = 7

Cell F15 = 9

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