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# Suppose you are considering buying a car, but not sure how much you can afford. So you call the car dealership and find out that the interest rate is 4% and the term is generally 5 years. Suppose that...

Suppose you are considering buying a car, but not sure how much you can afford. So you call the car dealership and find out that the interest rate is 4% and the term is generally 5 years. Suppose that your monthly income is \$2,000 and your total expenses are \$1,500.Based on this information, perform an analysis in Excel using PMT function and data tables to find out what price you can afford for a car. Then, submit the following:1) Excel file containing your calculations and data table2) Your conclusion based on your analysis
Answered Same Day Mar 15, 2022

## Solution

Khushboo answered on Mar 16 2022
Sheet1
Interest rate    4%
Term (Yrs)    5
Montly income    2000
Total expenses    1500
Net savings    500
Amount of loan can be obtained    \$ 27,149.53
Monthly payment    \$ 500.00
Amount of loan considering 60% of savings in installment    \$ 16,289.72
Analysis
In the case, the monthly...
SOLUTION.PDF