Question

You want to buy a new car. You can only afford $600/month. (Don’t forget to use autofill features) How much can you pay for the car? Highlight this answer in your favorite color. Be sure to make three worksheets in one excel file.

a. Prepare a loan amortization table for a 5% 5-year loan.

b. If you were able to get a 3% loan, how much more could you spend on a car. (Use spinners) Lock the 3% cell in this worksheet so it can’t be changed.

c. Your parents gave you a present of $130/month if you applied it directly to your loan. How much sooner can you pay off your loan.   (Create a new column “Add’l principle”)

d. Put your last name as a watermark on one of the worksheets

e. Password protect this file making sure to give me the password. Keep it simple please.

Answer 1

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Amount to be paid for Car	600* (PVAF 5%, 5 Year)	$       2,598
Part a		Installment	Interest	Principal	Balance
					$    2,598
Year 1		$           600	$ 129.90	$                         470	$    2,128
Year 2		$           600	$ 106.40	$                         494	$    1,634
Year 3		$           600	$    81.71	$                         518	$    1,116
Year 4		$           600	$    55.80	$                         544	$       572
Year 5		$           600	$    28.59	$                         571	$           0
Part b
Amount to be paid for Car	600* (PVAF 3%, 5 Year)	$       2,748
Additional Spending	2748-2598	$           150
Part c
Year	Installment	Interest	Principal	Additional Principal	Balance
					$    2,598
Year 1	$                               600	$     129.90	$       470	$                         130	$    1,998
Year 2	$                               600	$       99.90	$       500	$                         130	$    1,368
Year 3	$                               600	$       68.39	$       532	$                         130	$       706
Year 4	$                               600	$       35.31	$       565	$                         130	$         11
Will be paid almost in 4 year