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:
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
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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