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A B C D E F G H 1 You are interested in purchasing a $17,999 new car. You are weighing your 2 options regarding down payment and payment schedule. Your credit score 3 indicates that you can secure a loan with a 5.9% interest rate for a 5-year loan. The facts are summarized below. Car Price Down Payment 4 5 $ 6 7 Annual Interest Rate: 8 Loan years 9 17,999 10% 5.90% 5 10 Answer the questions below. 11 12 1. If you pay 10% as a down payment (so only need to borrow 90% of the car 13 price), use an EXCEL formulas and functions to complete the following table 14 assuming you make ANNUAL payments. Payment amount: 15 16 17 18 Total interest: Total repayment: Format with $, and as a positive number # of payments X Payment amount Total repayments - amount borrowed 19 20 21 2. If you pay 10% as a down payment (so only need to borrow 90% of the car 22 price), use an EXCEL formulas and functions to complete the following table 23 assuming you make MONTHLY payments. 24 25 Payment amount: 26 Total repayment: 27 Total interest: 28 29 30 3. Use an Excel formula to calculate the difference (subtraction) between the 31 total interest paid between the two options. 32 33 34 35 36 Difference:

A B C D E F G H 1 You are interested in purchasing a $17,999 new car. You are weighing your 2 options regarding down payment and payment schedule. Your credit score 3 indicates that you can secure a loan with a 5.9% interest rate for a 5-year loan. The facts are summarized below. Car Price Down Payment 4 5 $ 6 7 Annual Interest Rate: 8 Loan years 9 17,999 10% 5.90% 5 10 Answer the questions below. 11 12 1. If you pay 10% as a down payment (so only need to borrow 90% of the car 13 price), use an EXCEL formulas and functions to complete the following table 14 assuming you make ANNUAL payments. Payment amount: 15 16 17 18 Total interest: Total repayment: Format with $, and as a positive number # of payments X Payment amount Total repayments - amount borrowed 19 20 21 2. If you pay 10% as a down payment (so only need to borrow 90% of the car 22 price), use an EXCEL formulas and functions to complete the following table 23 assuming you make MONTHLY payments. 24 25 Payment amount: 26 Total repayment: 27 Total interest: 28 29 30 3. Use an Excel formula to calculate the difference (subtraction) between the 31 total interest paid between the two options. 32 33 34 35 36 Difference:

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 8FPE
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A B C D E F G H 1 You are interested in purchasing a $17,999 new car. You are weighing your 2 options regarding down payment and payment schedule. Your credit score 3 indicates that you can secure a loan with a 5.9% interest rate for a 5-year loan. The facts are summarized below. Car Price Down Payment 4 5 $ 6 7 Annual Interest Rate: 8 Loan years 9 17,999 10% 5.90% 5 10 Answer the questions below. 11 12 1. If you pay 10% as a down payment (so only need to borrow 90% of the car 13 price), use an EXCEL formulas and functions to complete the following table 14 assuming you make ANNUAL payments. Payment amount: 15 16 17 18 Total interest: Total repayment: Format with $, and as a positive number # of payments X Payment amount Total repayments - amount borrowed 19 20 21 2. If you pay 10% as a down payment (so only need to borrow 90% of the car 22 price), use an EXCEL formulas and functions to complete the following table 23 assuming you make MONTHLY payments. 24 25 Payment amount: 26 Total repayment: 27 Total interest: 28 29 30 3. Use an Excel formula to calculate the difference (subtraction) between the 31 total interest paid between the two options. 32 33 34 35 36 Difference:
Transcribed Image Text:A B C D E F G H 1 You are interested in purchasing a $17,999 new car. You are weighing your 2 options regarding down payment and payment schedule. Your credit score 3 indicates that you can secure a loan with a 5.9% interest rate for a 5-year loan. The facts are summarized below. Car Price Down Payment 4 5 $ 6 7 Annual Interest Rate: 8 Loan years 9 17,999 10% 5.90% 5 10 Answer the questions below. 11 12 1. If you pay 10% as a down payment (so only need to borrow 90% of the car 13 price), use an EXCEL formulas and functions to complete the following table 14 assuming you make ANNUAL payments. Payment amount: 15 16 17 18 Total interest: Total repayment: Format with $, and as a positive number # of payments X Payment amount Total repayments - amount borrowed 19 20 21 2. If you pay 10% as a down payment (so only need to borrow 90% of the car 22 price), use an EXCEL formulas and functions to complete the following table 23 assuming you make MONTHLY payments. 24 25 Payment amount: 26 Total repayment: 27 Total interest: 28 29 30 3. Use an Excel formula to calculate the difference (subtraction) between the 31 total interest paid between the two options. 32 33 34 35 36 Difference:
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