Part 1. Create a loan amortization table (50 points). You are considering purchasing a car with a sticker price of $36,270 (nonnegotiable with no down payment required). You wish to make monthly payments for five years and the most you can afford to pay is $700 a month. The credit union has agreed to loan you the money at a 4.04% annual interest rate. Create an amortization table in Excel and label the tab Bank PMT. Answer the following question a) What is your monthly payment and can you afford to purchase the car? Create a second amortization table in Excel and label the tab $725 PMT. Answer the following two questions b) Instead of taking out a five-year loan, you take out a six-year loan under the same terms as in part a. What is your monthly payment and compared to the five-year loan, how much more interest are you charged over the life of the six-year loan? c) Instead of making the regular payment for the five-year loan that you solved for in part a, you discover that you can actually afford monthly payments of $725. How long will it take you to pay off the loan if you make the $725 monthly payments or will you be paying less than your monthly required payment?

FIN-3120-Project-2 Fall-2018.pdf-Adobe Acrobat Pro DC File Edit View Window Help Home Tools FIN+3120+Project... x sign In 100% . d Share General Format Template for Part 1: Loan Amount Interest Rate Months Desired Payments Can you afford the payment? Why? Cumulative Cumulative Ending Prinipal Interest Balance PerodBalancement Principal In General Format Template for Part 2: I+ O Type here to search a e 1 @ rP^^ DJs 1040 AM 130/2018