All calculations must be an excel sheet

Step 1: Choose one of the three following scenarios: (a) Purchase a car

(b) Purchase a house

(c) Finance college

Step 2: Find a reasonable price for your purchase or future cost of college (attach an example from the newspaper, internet, or other reputable source- this can be a cut-out from the newspaper, print out from the internet, etc.).

Step 3: Find the current interest rate (attach an example from a loan officer at a bank, internet, or other reputable source- this can be a cut-out from the newspaper, flyer from the bank, or a print out from the internet, etc.).

Sources on the Internet:

LA TimesLinks to an external site.

BankrateLinks to an external site.

OC RegisterLinks to an external site.

CollegeBoardLinks to an external site.

*** Do not round the interest rate- use the exact interest rate given from the financial institution.

Step 4: Assume there is no down payment: Calculate your monthly payments over the life of the loan/purchase.

Step 5: Still assuming there is no down payment, calculate your total payments over the life of the loan/purchase.

Step 6: How much interest are you paying over the life of the loan/purchase?

Step 7: Assume you are making a 10% down payment or if you are looking at college loans, assume you are receiving 10% of the loan from your parents, i.e., you are borrowing less: Calculate your monthly payments over the life of the loan/purchase.

Step 8: Still assuming you are making a 10% down payment, calculate your total payments over the life of the loan/purchase.

Step 9: How much interest are you paying over the life of the loan/purchase?

Step 10: What is the absolute difference in interest from making no down payment to making a 10% down payment?

Step 11: Would you suggest making a down payment or not? Why or why not? Use your results above to justify your answer.

Step 12: paragraph summary why you picked the scenario and what you learned from this project in the context of your scenario.