Faculty of Business and Information Technology
Final Project
Value: 15%, Due: Dec. 2th @ 11:59 PM
IMPORTANT NOTE: ABSOLUTELY NO LATE PROJECT SUBMISSION IS ACCEPTED.
This final project should be completed individually. We take academic integrity seriously. Any
student found to be involved in plagiarism or cheating will be penalized in accordance with the
Ontario Tech University Academic Integrity Policy (https://usgc.ontariotechu.ca/policy/policy-
library/policies/academic/academic-integrity-policy.php).
To assert that you have not given, received, or used unauthorized assistance, write the following
pledge in the comment textbox when you submit your files through the Canvas system.
"I have not given, received, or used any unauthorized assistance."
Warning: It is strictly prohibited to disseminate/post this assignment or parts of it. Please refer to
Article 20 for details.
Durham Loan Assessment Calculator (Data file needed for this exercise: None)
You’ve recently joined a local financial institution, and your first task is to create a VBA application that
determines whether a person qualifies for a loan up to $100,000. The calculator will assess eligibility based
on the individual’s Debt-to-Income (DTI) ratio, comparing it against the bank's maximum allowable DTI
ratio of 35%. Additionally, the loan approval will depend on the relationship between the applicant’s monthly
loan payment and their monthly income.
Scenario
A potential car buyer provides the following information to calculate their eligibility for a car loan. You
will need to use the loan calculator UserForm to gather the necessary inputs and then calculate if the
buyer qualifies for a loan based on their DTI ratio and Car Loan Payment.
Inputs
1. Monthly Gross Income: The buyer’s monthly gross income (before taxes).
2. Existing Monthly Debt Payments: The sum of monthly debt payments, such as credit card
payments, student loans, etc
3. Cost: The amount the buyer intends to borrow for the car.
4. Down Payment: The amount of money paid upfront.
5. Loan Term (Years): The length of time the loan will be repaid.
6. Annual Interest Rate (APR): The interest rate for the loan.
Formulas
• Amount Owed: The difference between the cost of the item and the down payment.
• Monthly payment: Use the VBA function called, Pmt(Rate, NPER, PV).
o Rate: This is a numeric representation of the interest rate per period. For instance, if you secure
a car loan with an annual percentage rate (APR) of 10 percent and make monthly payments, the
rate per period would be 0.1/12, or 0.0083.
o NPER This is a numeric value indicating the total number of payment periods in the annuity.
For example, if you make monthly payments on a four-year car loan, the loan has a total of 4 *
12 (or 48) payment periods.
o PV: This is a specified amount representing the present value or loan amount. For instance,
when you borrow money to purchase a car, the loan amount is the present value to the lender of
the monthly car payments you commit to.
• DTI ratio: (Existing Monthly Debt Payments + Monthly Loan Payment) / Monthly Gross Income.
• Eligibility Criteria:
o The lender allows a maximum DTI Ratio of 35%.
o If the DTI Ratio exceeds 35%, the buyer does not qualify for the loan.
o If the DTI Ratio is 35% or lower, the buyer qualifies for the loan.
Please consult the attached file named "Final Project (with Password).xlsm" for guidance as you
work on this assignment. Your objective is to develop an application resembling the structure of
this file. It's important to be aware that the code in this file is secured with a password. DO NOT
INCLUDE THIS FILE IN YOUR SUBMISSION.
Sample Calculation
For example, a buyer would like to purchase a car worth $30,000 with the following details:
Input Value
Monthly Gross Income $4,500
Existing Monthly Debt Payments $1,000
Car Price (Cost) $30,000
Down Payment $4,500
Loan Term (Years) 5
Annual Interest Rate (APR) 6%
Calculation Process:
1. Loan Amount = Car Cost – Down Payment = $30,000 – $4500 = $25,500
2. Monthly Car Payment using the PMT function in VBA:
Loan Amount = 25,500, APR = 6%, Term = 5
Monthly Payment after using the PMT function = $492.99
3. DTI Ratio = (Existing Monthly Debt Payments + Monthly Car Payment)/Monthly Gross Income
= ($1,000 + $492.99)/$4500 = 0.3318 or 33.18%
4. Loan Qualification:
Since the DTI Ratio (33.1%) is below the maximum allowable 35%, the buyer qualifies for the car loan.
Task 1: Prepare Excel Macro-Enabled file (Refer to Fig. 1 as you complete Task 1)
(a) Create a NEW Macro-Enabled workbook named Durham Financials.xlsm. Insert a Documentation
worksheet and add an appropriate title for the workbook in cell A1. In cell B3 enter your name. In cell
B4 enter your student number. In cell B5 enter the completion date of your assignment and in cell B6
enter a sentence to describe the purpose of the workbook. Lastly, in cell A100, enter your
ontariotechu.net email address.
(b) Add a new worksheet and name the worksheet Loan Assessment Calculator.
(c) Add a button (from the ActiveX Control group). Change the caption to Open Calculator.
(d) Add a button (from the ActiveX Control group). Change the caption to Reset Worksheet.
(e) Create a reporting area similar to Fig. 1 (the company logo is included in the assignment document). Save
your workbook.
Fig. 1: Initial Setup
Task 2: Create an Income Tax Calculator User Form (Refer to Fig. 2 as you complete Task 2)
Create a user form similar to Fig. 2. Be sure to change the user form caption to Durham Financials (Loan
Assessment Calculator). For the image, use the company logo provided with the assignment document. For
this exercise, you will be using an Image holder, Textboxes, Labels, and Command Buttons. Save your
file.
Fig. 2: Durham Financials User Form
Fig. 3: Durham Financials Assessment Calculator Sample Run
Task 3: Program Each User Form Command Buttons (Refer to Fig. 3 as you complete Task 3)
(a) The Assess Loan button should compute and display the loan amount, monthly payment, DTI ratio, and
whether the user qualifies for the loan (Yes or No) based on the information provided by the user (don’t
forget to format these values).
(b) The Reset Form button should clear the user form (i.e., six textboxes and four labels).
(c) The Generate Report button should compute and display the required information on the Loan
Assessment Calculator worksheet as shown in Fig. 3.
NOTE: ALL CALCULATIONS AND NUMBER FORMATTING MUST BE DONE THROUGH VBA.
(d) The Exit button should close the user form.
(e) Save your workbook.
Task 4: Program Each Worksheet Command Button
(a) The Open Loan Calculator button should open the Durham Financials Calculator user form.
(b) The Reset Worksheet ActiveX control button should clear the contents of the worksheet (C13:C18 and
C21:C25). Save your workbook.
Task 5: Error Handling
The Loan Assessment Calculator user form should include error handling to prevent malfunctions caused by
empty text boxes or loan amounts exceeding $100,000. For instance, if any text box is left blank or the
loan amount is greater than $100,000, the program should display an error message similar to Fig. 4. Be sure
to test your application, then save and close your workbook.
Fig. 4: Durham Financials Assessment Calculator Error Message
Submission Guideline: Using Canvas, please submit your solution file by Dec. 2nd, 2024, at
11:59 PM.
