4-132. Higher interest rates won't cost you as much to drive a car as do higher gasoline prices. This is because automobile loans have payment schedules that are only modestly impacted by Federal Reserve Board interest-rate increases. Create a spreadsheet to compare the difference in monthly payments for a $25,000 loan having 60 monthly payments for a select number of interest rates. Use 3% as the base APR and go as high as an APR of 12%. Challenge: Make your spreadsheet flexible enough to be able to look at the impact of the different interest rates for different loan amounts and different repayment periods. (4.15)) (41,012 (6)
4-132. Higher interest rates won't cost you as much to drive a car as do higher gasoline prices. This is because automobile loans have payment schedules that are only modestly impacted by Federal Reserve Board interest-rate increases. Create a spreadsheet to compare the difference in monthly payments for a $25,000 loan having 60 monthly payments for a select number of interest rates. Use 3% as the base APR and go as high as an APR of 12%. Challenge: Make your spreadsheet flexible enough to be able to look at the impact of the different interest rates for different loan amounts and different repayment periods. (4.15)) (41,012 (6)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
I have pasted another pic which contains the question if this is what your asking. The pic I previously pasted was the answer on your website that I checked with monthly payment. It wasn't a big help because it was a screen shot of the spreadsheet and I couldn't check the funtions.
So I would like to ask the exact funtion that I can't see in whole for columnB.
And how 'i' in columnC is determined with those numbers.
And also how the monthly payment in column F is calculated according to the table.
->I would like on overall description of Chapter 4 Question 132SE. You can deduct more questions if this is counted as multiple questions. But I would like to have a fast and accurate answer because I am in a bit of a hurry. Thank you.
Transcribed Image Text:CASE STUDY EXERCISES 215
4-131. Refer to Example 4-23. Suppose the cash-flow
sequence continues for 10 years (instead of four).
Determine the new values of P, A, and F.(4.12)
Table 4-1.
vestigate
principal
of the
4-132. Higher interest rates won't cost you as much
to drive a car as do higher gasoline prices. This is
because automobile loans have payment schedules that
are only modestly impacted by Federal Reserve Board
interest-rate increases. Create a spreadsheet to compare
the difference in monthly payments for a $25,000 loan
having 60 monthly payments for a select number of
interest rates. Use 3% as the base APR and go as high
as an APR of 12%. Challenge: Make your spreadsheet
flexible enough to be able to look at the impact of the
different interest rates for different loan amounts and
e with
adsheet
money
1, B12.
ivalent
cheet
different repayment periods. (4.15)
(9)210126
d lliw isdW 6
138 EAG
hom sco
(P) 200 000
(c) 283 120
by
(c) 233382
(3) 241J03
b)
o bib doum word.dinom 19q N2.07o oi les1sini boxit
mIGLG2) 21200 on psAG 30-20L jos
20 R 21
438XonL mourp oe behmcur (buncib ba
oi 1ool2 ouord woy oandonug of nsd odt moil woIod
of lnsd ords moil
(T.A) 1owans 12ol
CO
Transcribed Image Text:Monthly payment at different level of interest rate can be calculated by
using the spreadsheet as follows.
fe =POWER(E50,60)
C
E
F
H
B
C
E
F
Yearly
Monthly Power(1+i),6|i
Column(B-1) Column(B*C) Monthly Payment
416.67
0.01 0.000833
1.05
0.0009
0.05
0.02
427.34
0.02 0.001667
1.11
0.0018
0.11
0.02
438.19
0.03
0.0025
1.16
0.0029
0.16
0.02
449.22
460.41
0.04 0.003333
0.05 0.004167
1.22
0.0041
0.22
0.02
1.28
0.0053
0.28
0.02
471.78
0.06
0.005
1.35
0.0067
0.35
0.02
483.32
495.03
506.91
0.07 0.005833
1.42
0.0083
0.42
0.02
0.08 0.006667
1.49
0.0099
0.49
0.02
0.09
0.0075
1.57
0.0117
0.57
0.02
518.96
0.1
0.008333
1.65
0.0137
0.65
0.02
531.18
0.11 0.009167
1.73
0.0158
0.73
0.02
543.56
0.12
0.01
1.82
0.0182
0.82
0.02
556.11
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