Recently you purchased a nice car for $52,000 on January 1, 2023. The dealer asked you...

 

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Recently you purchased a nice car for $52,000 on January 1, 2023. The dealer asked you to pay $2000 down and offered you financing for the remaining. The condition of the financing was as follows: 1. Total period was 7 years. 2. Interest rate is 4.9% 3. Your payment should be at the end of each month. Required to calculate your monthly payments using the appropriate time value of money formula provided for you below. Do not use any other method such as Excel present value function as it would has zero value for this project. You must prepare the following schedule in Excel and fill in the numbers. Make sure DO NOT type the numbers and rather transfer the cells. #of Period in years # of period in months Interest rate per year Interest rate per month Principle of the loan Annuity (monthly payment) Time Value of Money Formulas: Please Note: again, for calculation of the Annuity, you must use the appropriate Time Value of Money Formula provided below: Schedule of Loan Amortization Fundamental Variables . . 7 . ? ? • Future Value of a single sum >> • Present Value of a single sum >> PV=FV (1+i). • ¡ - Interest rate per period (month) . n-Number of time periods (months) FV-Future value PV-Present value A - Annuity (mortgage) • • Future Value of an ordinary annuity >> Present Value of an ordinary annuity >> Present Value of an annuity due >> • • Present Value of perpetual Annuity >> FV= PV (1+i): FV₁. = A (((1+i)-1)/i)| PV = A((1-(1/(1+i):))/1)) PV = A (1+((1-1/(1+i)-¹)/1)) PVp.= A/i Schedule of payments Period 1/1/X1 1/30/X1 Total Payments Interest Principle ? Answer the following Questions: 1. Your total payment, including $2,000 down payments: 2. Your total payment excluding down payment: 3. Your total interest expense for the first year: 4. Your total interest Expense over a 7-year period: 5. Total cost of the car that you purchased: Balance $50,000 Recently you purchased a nice car for $52,000 on January 1, 2023. The dealer asked you to pay $2000 down and offered you financing for the remaining. The condition of the financing was as follows: 1. Total period was 7 years. 2. Interest rate is 4.9% 3. Your payment should be at the end of each month. Required to calculate your monthly payments using the appropriate time value of money formula provided for you below. Do not use any other method such as Excel present value function as it would has zero value for this project. You must prepare the following schedule in Excel and fill in the numbers. Make sure DO NOT type the numbers and rather transfer the cells. #of Period in years # of period in months Interest rate per year Interest rate per month Principle of the loan Annuity (monthly payment) Time Value of Money Formulas: Please Note: again, for calculation of the Annuity, you must use the appropriate Time Value of Money Formula provided below: Schedule of Loan Amortization Fundamental Variables . . 7 . ? ? • Future Value of a single sum >> • Present Value of a single sum >> PV=FV (1+i). • ¡ - Interest rate per period (month) . n-Number of time periods (months) FV-Future value PV-Present value A - Annuity (mortgage) • • Future Value of an ordinary annuity >> Present Value of an ordinary annuity >> Present Value of an annuity due >> • • Present Value of perpetual Annuity >> FV= PV (1+i): FV₁. = A (((1+i)-1)/i)| PV = A((1-(1/(1+i):))/1)) PV = A (1+((1-1/(1+i)-¹)/1)) PVp.= A/i Schedule of payments Period 1/1/X1 1/30/X1 Total Payments Interest Principle ? Answer the following Questions: 1. Your total payment, including $2,000 down payments: 2. Your total payment excluding down payment: 3. Your total interest expense for the first year: 4. Your total interest Expense over a 7-year period: 5. Total cost of the car that you purchased: Balance $50,000

Answer rating: 100% (QA)

Solution Here is the schedule of loan amortization with the calculat... View the full answer