Data Table Problem Financing a Car What can I afford? We can figure out the monthly payment to finance a car using the PMT function in Excel. That payment will be dependent on how much the car costs and the interest rate. Let's fix the duration of the loan to 5 years. Once we figure out the monthly paymenet for say $25,000 loan at 4.00% annual interest rate, then we can create a Data Table to see how the monthly payment is affected for all combinations of loan amounts and annual interest rates. Loan Amount Annual Interest Rate Monthly Payment Data Table $ 15,000.00 $ 20,000.00 $ 25,000.00 $ 30,000.00 $ 35,000.00 $ 40,000.00 $25,000 4% 1% 2% 3% Annual Interest Rates 4% 5% 6% 7% 8% Instructions Put in the PMT formula in C13 Create the Data table Make B16 equal the value in C13 (important step) Highlight the data table and fill in the data table Format values in the data table as currency Possible Points Points Earned 2 2 1 2
Data Table Problem Financing a Car What can I afford? We can figure out the monthly payment to finance a car using the PMT function in Excel. That payment will be dependent on how much the car costs and the interest rate. Let's fix the duration of the loan to 5 years. Once we figure out the monthly paymenet for say $25,000 loan at 4.00% annual interest rate, then we can create a Data Table to see how the monthly payment is affected for all combinations of loan amounts and annual interest rates. Loan Amount Annual Interest Rate Monthly Payment Data Table $ 15,000.00 $ 20,000.00 $ 25,000.00 $ 30,000.00 $ 35,000.00 $ 40,000.00 $25,000 4% 1% 2% 3% Annual Interest Rates 4% 5% 6% 7% 8% Instructions Put in the PMT formula in C13 Create the Data table Make B16 equal the value in C13 (important step) Highlight the data table and fill in the data table Format values in the data table as currency Possible Points Points Earned 2 2 1 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Data Table Problem
Financing a Car
What can I afford?
We can figure out the monthly payment to finance a car using the PMT function in
Excel. That payment will be dependent on how much the car costs and the
interest rate. Let's fix the duration of the loan to 5 years.
Once we figure out the monthly paymenet for say $25,000 loan at 4.00% annual
interest rate, then we can create a Data Table to see how the monthly payment is
affected for all combinations of loan amounts and annual interest rates.
Loan Amount
Annual Interest Rate
Monthly Payment
Data Table
$ 15,000.00
$
20,000.00
$ 25,000.00
$ 30,000.00
$ 35,000.00
$ 40,000.00
$25,000
4%
1%
2%
3%
Annual Interest Rates
4%
5%
6%
7%
8%
Instructions
Put in the PMT formula in C13
Create the Data table
Make B16 equal the value in C13 (important step)
Highlight the data table and fill in the data table
Format values in the data table as currency
Possible
Points
Points
Earned
2
2
1
2
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