Find yourself a dream car and determine the price of this car.
Prepare a loan amortization table using Excel based on the following scenarios:
Scenario 1:
Downpayment – 0%
Interest 6% (annual)
Frequency of payment – monthly
Duration of the loan – 5 years ( 60 month)
Scenario 2:
Downpayment – 10%
Interest 6% (annual)
Frequency of payment – monthly
Duration of the loan – 5 years ( 60 month)
Scenario 3:
Downpayment – 0%
Interest 6% (annual)
Frequency of payment – monthly
Duration of the loan – 6 years ( 72 month)
Scenario 4:
Downpayment – 10%
Interest 6% (annual)
Frequency of payment – monthly
Duration of the loan – 6 years ( 72 month)
For each scenario create its own Tab (Sheet) in the Excel worksheet and name the corresponding sheet by the asset.
At the top of each sheet create the input cells with the initial parameters of the asset (make and model of the car, purchase price, downpayment amount, interest rate, frequency of payments, duration of the loan).
Below in input cells create amortization schedule for each scenario.
In a separate word document provide answers to the following questions:
How much of the interest would you pay over the life of the loan under each of the above scenarios?
Which loan would you choose? Why?
