1. When in cell C3 the interest rate is 1% or 0.01 the annual worth of this alternative is:

2. When in cell C4 the number of periods is changed from 36 to 48 payments the annual worth of this alternative is:

3. When in cell C5 the present value is changed from $15,000 to $10,000 (due to a $5,000 down payment) the annual worth of this alternative is:

4. Which is the best alternative or where you pay less interest in dollars?

1 Annual or Payment calculations Interest Rate Number of Periods Present Value Future Value 0.0025 36 15,000 0 4 Payments is: ($436.22) PMT(C3,C4,C5,C6,C7) 10 ($703.85) Interest paid ($ -C4*C8+C5 12 13 1A