Create an amortization table in Excel for a new car loan for 30,000 for six years at 5%. Determine the total amount of interest you will pay on this loan. Copy the table from Step 1, make an extra principal payment of $2,000 on the first day of year two. How does this change the total interest you will pay on this loan? Create an amortization table in Excel for a new car loan for 30,000 for three years at 5%. Determine the total amount of interest you will pay on this loan. Copy the table from Step 3, change the interest rate to 2%. How does this change the total interest that you will pay on the loan? What is the total amount you will pay for the car (principal and interest) in each of the steps 1, 2, 3 and 4.

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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  1. Create an amortization table in Excel for a new car loan for 30,000 for six years at 5%. Determine the total amount of interest you will pay on this loan.
  2. Copy the table from Step 1, make an extra principal payment of $2,000 on the first day of year two. How does this change the total interest you will pay on this loan?
  3. Create an amortization table in Excel for a new car loan for 30,000 for three years at 5%. Determine the total amount of interest you will pay on this loan.
  4. Copy the table from Step 3, change the interest rate to 2%. How does this change the total interest that you will pay on the loan?
  5. What is the total amount you will pay for the car (principal and interest) in each of the steps 1, 2, 3 and 4.
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