The first picture is the question. Home Depot with those computed in class and g

Question

The first picture is the question. Home Depot with those computed in class and give a short discussion. In the last two spreadsheet of file "FINC331 Excell .xlsx", you find the amortization table of an auto loan that we have discussed in class. Use the data to answer the following questions: 2. (a) Compute the total amount paid, monthly payment and total interest payment for different annual interest rate level. Plot payment and total interest, and discuss how they change with respect to interest rate level. (b) Compute the total loan amount, monthly payment, and total interest payment for different down payment amount. Plot payment and total interest, and discuss how they change with respect to down payment amount.

Explanation / Answer

in the above spread sheet total loan amount is $20,000. Annual intrest rate is 8.50% tenure 3 yrears and compounding at monthly so here

total intrest and principle is = $22,729 total intrest is 2729

using the formula P = A/D

where A = lown amount

where D = Discount Factor (D) = {[(1 + i) n] - 1} / [i(1 + i)n}

i = 8.50/12

n = 12*3 = 36 monthd

with down payment

annual intrest monthly emi total intrest total paid 2.00% 573 623 20,623 3.00% 582 938 20,938 4.00% 590 1257 21,257 5.00% 599 1579 21,579 6.00% 608 1904 21,904 7.00% 618 2232 22,232 8.00% 627 2562 22,562 9.00% 636 2896 22,896 10.00% 645 3232 23232

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