How do these two in excel? 2. Purchasing a car: You are considering purchasing...
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How do these two in excel?
2. Purchasing a car: You are considering purchasing a $20,000 car. The car dealership offers you a "deal" where you put can pay $399 a month for 60 months and take the car home today a. What is the annual interest rate on this loan? Hint: solve for l/Y b. Build an amortization schedule for this loan over the entire loan term (i.e., until the loan is completely paid off) c. You decide to buy the car using the loan from the car dealership. One year later, you find a deal where your bank will allow you to get a 48 month car loan for 5.50% interest (compounded monthly). What is the new monthly payment on the new loan (assume the outstanding balance from part cat the end of the first year is the amount owed on the loan). d. Create a new amortization schedule for the new loan e. How much is the total interest savings you w save from getting the new loan? HINT: add up all of the nterest in the amortization schedules over the same time period
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