inanciera 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 (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:

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
Section: Chapter Questions
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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 (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.

Problema 4:
Financiera FIAT normalmente otorga créditos para la compra de automóviles nuevos, al
13.2% de interés con pagos mensuales, a 4 años. Solicita un anticipo mínimo del 5% y
máximo del 35% del valor inicial del auto sin incluir seguros y placas, esos gastos se
pagan de contado. Considerando lo anterior, calcular el costo de intereses y el monto
de los pagos mensuales considerando los anticipos de menor a mayor y variando de
10% en 10% (5, 15, 25 y 35%). Conforme va subiendo el anticipo, la tasa baja cada vez
el 0.25%. El costo final del automóvil FIAT todo equipado es de $274,000.00, incluidos
$18,500.00 de seguros y placas.
Transcribed Image Text:Problema 4: Financiera FIAT normalmente otorga créditos para la compra de automóviles nuevos, al 13.2% de interés con pagos mensuales, a 4 años. Solicita un anticipo mínimo del 5% y máximo del 35% del valor inicial del auto sin incluir seguros y placas, esos gastos se pagan de contado. Considerando lo anterior, calcular el costo de intereses y el monto de los pagos mensuales considerando los anticipos de menor a mayor y variando de 10% en 10% (5, 15, 25 y 35%). Conforme va subiendo el anticipo, la tasa baja cada vez el 0.25%. El costo final del automóvil FIAT todo equipado es de $274,000.00, incluidos $18,500.00 de seguros y placas.
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