Question

How do you make an excel spreadsheet that will enable users to calculate and compare 3 car loans? The table should include the total amount paid for given loan amount with different interest rates and number of finance months

Answer 1

Answer

1. Formula = PMT(interest rate/12,Term(months),Loan amount).
2. Formula for Total Interest = (Monthly payments*loan term)- Loan amount.
3. Formula total amount paid = Monthly payment * Loan term.

Alternative .1
Loan term is 5 years and Interest Rate is 5%
Car loan amount	$    50,000.00
Interest rate	5%
Term (months)	60.00
Monthly Payment	$ -943.56
Total amount of interest paid	$ 6,613.70
Total amount paid	$ -56,613.70
Alternative .2
Loan term is 4 years and Interest Rate is 6%
Car loan amount	$    50,000.00
Interest rate	6%
Term (months)	48.00
Monthly Payment	$    -1,174.25
Total amount of interest paid	$ 6,364.07
Total amount paid	$ 56,364.07
Alternative .3
Loan term is 3 years and Interest Rate is 7%
Car loan amount	$    50,000.00
Interest rate	7%
Term (months)	36.00
Monthly Payment	$ -1,543.85
Total amount of interest paid	$ 5,578.77
Total amount paid	$ 55,578.77