Hi,

I need help with this excel assignment.

How did they get the answer for this question?

The President of the company is thinking of financing the new loan amount using new orders. Based on historical data, she calculated that on average, every new order will contribute $7500 of new revenue. Given the750 original constraints (loan amount = 2,000,000; payback period = 36 months), use Solver (in cells C19:D23) to calculate the amount of new monthly orders that are needed to pay back the loan in 36 months.

Loan Amount	$ 2,000,000
Payback period (months)	36
Interest rate (annual)	6.50%
Monthly payment	$61,298.01
				Months
			$61,298.01	24	30	36	42	48
		Interest Rate	5.00%	$87,742.78	$71,058.73	$59,941.79	$52,006.07	$46,058.59
			5.50%	$88,191.31	$71,507.42	$60,391.80	$52,458.05	$46,512.95
			6.00%	$88,641.22	$71,957.84	$60,843.87	$52,912.43	$46,970.06
-------->			6.50%	$89,092.50	$72,409.97	$61,298.01	$53,369.22	$47,429.91
			7.00%	$89,545.16	$72,863.81	$61,754.19	$53,828.40	$47,892.49
			7.50%	$89,999.19	$73,319.38	$62,212.44	$54,289.98	$48,357.80
		Solver:
		Loan Amount	$2,000,000
		New Monthly Orders	7.407407
		Amount per Order	$ 7,500.00
		Months to payback	36	=	36