Example : You want to buy a $18,500 car. The company is offering a 3% interest rate for 4 years. What will your monthly payments be? I will do this one for you and show you how I want you to describe your formula/inputs in excel if that is how you choose to go about solving problems 2 through 5 - which I strongly recommend. If you choose to perform the calculations by hand show the formula used with values. Excel: Formula used: PMT Rate input: .03/12 NPer input: 4*12 Pv input: 18500 Answer : $409.49 per month 2. You want to buy a $22,500 car. The company is offering a 4% interest rate for 5 years. a.What will your monthly payments be? Round to the nearest cent .b. Assuming you pay that monthly amount for the entire 5 years, what is the total amount of money you will pay during those 5 years for the car? c.How much interest will you pay during those 5 years?
Example : You want to buy a $18,500 car. The company is offering a 3% interest rate for 4 years.
What will your monthly payments be?
I will do this one for you and show you how I want you to describe your formula/inputs in excel if that is how you choose to go about solving problems 2 through 5 - which I strongly recommend. If you choose to perform the calculations by hand show the formula used with values.
Excel:
Formula used: PMT
Rate input: .03/12
NPer input: 4*12
Pv input: 18500
Answer : $409.49 per month
2. You want to buy a $22,500 car. The company is offering a 4% interest rate for 5 years.
a.What will your monthly payments be? Round to the nearest cent
.b. Assuming you pay that monthly amount for the entire 5 years, what is the total amount of money you will pay during those 5 years for the car?
c.How much interest will you pay during those 5 years?
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