3 7 3 9 20 21 22 23 24 You want to buy a car by...
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3 7 3 9 20 21 22 23 24 You want to buy a car by taking out a 3 year loan for $15,000 with a 7% interest rate. A- Create an amortization table of the loan that shows the portion of interest and principal on each payment. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Beginning Balance Payment Interest Principal Ending Balance 8 50 51 52 53 54 55 Place Chart Here! 56 57 58 59 60 61 62 63 64 65 66 B- Create a stacked column chart that shows interest and principal on each column 67 68 69 70 71 72 73 74 75 76 77 78 79 C-Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 year lease option will require a $3,000 down payment and monthly payments of $350. If the salvage value of the new vehicle after 3 years is $5,000 and you can invest at a rate of return of 4%, what is your best option? (Ignore your old vehicle.) Buy Personal Investment Rate Salvage Value Car Loan Payments Lease Down Payment Monthly Payments NPV of Buying NPV of Leasing Buy or Lease? 4% $5,000.00 $ 3,000.00 S 350.00 3 7 3 9 20 21 22 23 24 You want to buy a car by taking out a 3 year loan for $15,000 with a 7% interest rate. A- Create an amortization table of the loan that shows the portion of interest and principal on each payment. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Beginning Balance Payment Interest Principal Ending Balance 3 7 3 9 20 21 22 23 24 You want to buy a car by taking out a 3 year loan for $15,000 with a 7% interest rate. A- Create an amortization table of the loan that shows the portion of interest and principal on each payment. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Beginning Balance Payment Interest Principal Ending Balance 3 7 3 9 20 21 22 23 24 You want to buy a car by taking out a 3 year loan for $15,000 with a 7% interest rate. A- Create an amortization table of the loan that shows the portion of interest and principal on each payment. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Beginning Balance Payment Interest Principal Ending Balance 8 50 51 52 53 54 55 Place Chart Here! 56 57 58 59 60 61 62 63 64 65 66 B- Create a stacked column chart that shows interest and principal on each column 67 68 69 70 71 72 73 74 75 76 77 78 79 C-Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 year lease option will require a $3,000 down payment and monthly payments of $350. If the salvage value of the new vehicle after 3 years is $5,000 and you can invest at a rate of return of 4%, what is your best option? (Ignore your old vehicle.) Buy Personal Investment Rate Salvage Value Car Loan Payments Lease Down Payment Monthly Payments NPV of Buying NPV of Leasing Buy or Lease? 4% $5,000.00 $ 3,000.00 S 350.00 8 50 51 52 53 54 55 Place Chart Here! 56 57 58 59 60 61 62 63 64 65 66 B- Create a stacked column chart that shows interest and principal on each column 67 68 69 70 71 72 73 74 75 76 77 78 79 C-Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 year lease option will require a $3,000 down payment and monthly payments of $350. If the salvage value of the new vehicle after 3 years is $5,000 and you can invest at a rate of return of 4%, what is your best option? (Ignore your old vehicle.) Buy Personal Investment Rate Salvage Value Car Loan Payments Lease Down Payment Monthly Payments NPV of Buying NPV of Leasing Buy or Lease? 4% $5,000.00 $ 3,000.00 S 350.00 8 50 51 52 53 54 55 Place Chart Here! 56 57 58 59 60 61 62 63 64 65 66 B- Create a stacked column chart that shows interest and principal on each column 67 68 69 70 71 72 73 74 75 76 77 78 79 C-Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 year lease option will require a $3,000 down payment and monthly payments of $350. If the salvage value of the new vehicle after 3 years is $5,000 and you can invest at a rate of return of 4%, what is your best option? (Ignore your old vehicle.) Buy Personal Investment Rate Salvage Value Car Loan Payments Lease Down Payment Monthly Payments NPV of Buying NPV of Leasing Buy or Lease? 4% $5,000.00 $ 3,000.00 S 350.00
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Related Book For
An Introduction To Statistical Methods And Data Analysis
ISBN: 9781305465527
7th Edition
Authors: R. Lyman Ott, Micheal T. Longnecker
Posted Date:
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