Mini Project (50 Points): Loan Amortization Schedule You purchase a fully loaded Honda Accord with an MSRP of $32,000 for $27,000. You pay the 3% tax of $810 up front and put down $5,000. The deale

Mini Project (50 Points): Loan Amortization Schedule

 You purchase a fully loaded Honda Accord with an MSRP of $32,000 for $27,000. 

You pay the 3% tax of $810 up front and put down $5,000.  The dealer offers

a simple interest installment loan with an annual rate of 5% for 3 years.  The projected resale value of the car after 2 years is $17,000.

1)    Compute the loan value and monthly loan payments. (10 pts)

2)    Create a monthly amortization schedule over the entire loan period. (10 pts)

3)    Compute total interest over the entire loan period. (5 pts)

4)    Compute the total cash outflow (tax, plus down payment, plus total monthly loan payments). (8 pts)

5)    Compute the amount you would net after selling the car at 2 years. (7 pts)

Please show all calculations and complete monthly amortization schedule.

Below are the steps he wants us to follow for each question.

Questions:

1)    Compute monthly loan payments

3 steps:

1)    Compute Loan Value

  Purchase Price (Given)

– Down Payment (Given)

= Loan Value

2)    Convert annual loan term to # of months and interest rate to monthly

Interest rate (should be in decimal form)

3)    Use Excel formula to compute monthly payment

= – PMT(rate, period, PV)

Pull these from steps 1 and 2

2)    Create monthly amortization schedule

10 steps:

1)    Enter column headings: 

Beginning Balance =BB

Monthly Payment = PMT

Monthly Interest = INT

Monthly Principal Repaid = PRINC

Ending Balance = EB

2)    Enter months by #

1 in first row; = first row cell + 1 for rest

3)    Enter first BB (pull loan value from question 1)

4)    Enter first PMT (pull from question 1; anchor row using $)

5)    Compute first INT:  Multiply BB by Monthly interest rate (from Question 1; anchor using $)

6)    Compute first PRINC:  =PMT – INT

7)    Compute first EB:  =BB – PRINC

8)    Copy down first row until end of loan term

9)    Go to second row of amortization schedule, first column (BB) & pull EB from first row.  Copy this formula down to end of loan term

Check to be sure EB in last month of loan term = 0

10)Enter SUM formula at bottom to sum PMT, INT, PRINC columns

Check to be sure PRINC sum = Loan Value from Question 1

3)    Compute total interest

Use sum of INT column computed in Question 2

4)    Compute total cash outflow

   Down Payment

+ Total of PMT column (from Question 2)

+ Up front tax payment

= Total Cash Outflow

5)    Compute amount you would net after selling car at 3 years

   Sale Price at End of Yr 3 (Given)

– Loan Balance Remaining at end of Yr 3 (EB in Mo 36)

= Amount Netted From Selling Car at End of Yr 3

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more