Financiera FIAT normally grants loans for the purchase of new cars, at 13.½% interest with monthly payments, for 4 years. It requests a minimum down payment of 5% and a maximum of 35% of the initial value of the car, not including insurance and license plates; these expenses are paid in cash. Considering the above, calculate the interest cost and the amount of the monthly payments considering the down payments from smallest to largest and varying from 10% to 10% (5, 15, 25 and 35%). As the down payment increases, the rate decreases each time by 0.25%. The final cost of the fully equipped FIAT automobile is $274,000.00, including $18,500.00 of insurance and license plates.
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
Problem 4:
Financiera FIAT normally grants loans for the purchase of new cars, at 13.½% interest with monthly payments, for 4 years. It requests a minimum down payment of 5% and a maximum of 35% of the initial value of the car, not including insurance and license plates; these expenses are paid in cash. Considering the above, calculate the interest cost and the amount of the monthly payments considering the down payments from smallest to largest and varying from 10% to 10% (5, 15, 25 and 35%). As the down payment increases, the rate decreases each time by 0.25%. The final cost of the fully equipped FIAT automobile is $274,000.00, including $18,500.00 of insurance and license plates.
Note:
In the image, this is the original exercise, it is in Spanish, but it is easy to understand.
Very important Note:
It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
PLEEEASE:
read the original exercise in Spanish, to better understand the context and understanding. (is easy to understand the meaning)
Step by step
Solved in 3 steps with 3 images
