a)Upon entering college, you purchase the car of your dreams for $26000. You pay $5200 down and finance the balance for 4 years at 7% compounded monthly. Your monthly payments are $498.09. Set up the spreadsheet to display the outstanding balance for each month for 4 years. As a checkpoint, you should get $16931.98 just after your 10th payment. How much is still owed on the loan just after 30 payments.$ Find the size of the last payment. $ How much interest in total did you spend on the car? $ (b) If you decided to get a 3 year loan instead of a 4 year loan the payments will be $642.25. What will be the total saving in interest from getting a three year loan instead of a 4 year loan?(Note: you do not need a spreadsheet to answer this question.) $ (c) If you decided to get a 5 year loan, the payments will be $411.87. Determine the total amount of interest that will be paid on a 5 year loan $

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
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a)Upon entering college, you purchase the car of your dreams for $26000. You pay $5200 down and finance the balance for 4 years at 7% compounded monthly. Your monthly payments are $498.09. Set up the spreadsheet to display the outstanding balance for each month for 4 years. As a checkpoint, you should get $16931.98 just after your 10th payment. How much is still owed on the loan just after 30 payments.$ Find the size of the last payment. $ How much interest in total did you spend on the car? $ (b) If you decided to get a 3 year loan instead of a 4 year loan the payments will be $642.25. What will be the total saving in interest from getting a three year loan instead of a 4 year loan?(Note: you do not need a spreadsheet to answer this question.) $ (c) If you decided to get a 5 year loan, the payments will be $411.87. Determine the total amount of interest that will be paid on a 5 year loan $
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