I was writing a big ass final yesterday morning and I just couldn't get this one question right even though I knew how to do it and never had this problem before. Basically, you're given some information regarding loans and have to find the best scenario. It's pretty simple finance stuff, so something like;
"Balance on current loan: $56,475
Periods remaining: 66
Periodic Rate: 0.6%
Find all related information including APR, APY, and payment. Suppose you were offered a new loan to close this one out. Your new loan has a closeout price of XXXX and a APR of XX%, and lasts a term of 72 months. If you were only concerned with the rate would this loan be worthwhile? What would the cost difference of the loan be? If cash flow was a concern, what rate would you need to negotiate to make the transfer worthwhile?"
It's kind of a shitty and convoluted question, but if you were just looking at how to do this in excel 12 hours earlier, it'd be pretty easy because you really only need to know three pieces of information about any loan to find everything out about it. The transferring is the hard part.
So, I'm in the exam doing this and it was the first question after the accounting part of the test. I fucking hate accounting and gave up on studying it a long time ago when my dad sat me down and said "Son, you can do anything you want...just don't become an accountant." He's a CA and it's a horrible job (he broke out of that shit young and started a slightly accounting related consulting business). I can see why it sucks....it's for fucking robots. So, I basically guessed my way through that part, and hit the finance part. First question..."oh, EASY." Start doing it in excel.....number fucking errors all over the place. What the fuck?
This question is worth like 2 points on a 100 something point test. I don't know why, because it's actually more work than a lot of them, but I think that's how he scaled it to avoid people failing. I get caught up for literally 20 min trying to figure it out and never did. I wrote a note on my excel sheet basically saying "WTF?", wrote a note on the test telling him to look at that, figuring I'd get at least one mark for having all the formulas in correctly.
So I'm sitting here today and open up excel while studying for something else and decide to fuck around with the question just to see what was up. Ohhhhhhhh.....DOLLAR SIGNS. Apparently this is the only function in excel where they actually matter (I think) and I never use them for draft calculations.
That would have easily fucked with me if a third of the test wasn't simple first year economics that I burned through in about 3 min.
If I failed by one or two marks, I'll have a fucking conniption though. The funny part is I just passed the midterm and the professor basically told me it was because I was doing everything by hand and there just was too much possibility for error when you don't have time to double check shit that way. MY GODDAMN PENCIL STILL WORKS WITHOUT DOLLAR SIGNS MOTHERFUCKER.
Oh, and a persian girl basically stared crying halfway through the test...which was kind of awesome, but kinda sad.