Hello, I have to create a scenario analysis using the scenario manager tool on E

Question

Hello, I have to create a scenario analysis using the scenario manager tool on Excel for a car (any car is fine) using high, current, and low interest rates (these would be made up, other than the ‘current’ on already on the sheet). Can someone please give me the steps how to do this? Thank you fx Interest Rate Monthly Payment Down Payment $ g Model Name Dealer Price Years of Finance Manufacturer Name Audi AG A4-Sedan x1 E-300 Sedan Rogue SV 45,750.00 $37.945.00 S 61,245.00 6.9% 3.3% 3.6% 2.5% 9,148.00 ,500.00 6,000.00 2,000.00 622.27 486.50 745.00 450.61 $ 3 BMW 4 Mercedes Benz 5 Nissan 10 12 13

Explanation / Answer

first we have to understand the steps

step 1>>take the first case of Audi the car loan price is $ 45,750 substract the down payment if any we have $ 9148

we get $ 36,602

step 2>>now the interest we have is 6.9% or 0.069 divide this by 12 i.e. 0.069/12 =0.00575

step 3>>multiply principal amount from step 1 with the number from step 2 = 36,602*0.0575=$ 210.4615

step 4>>add 1 to the same number from step 2 i.e. 0.00575 therefore 1.00575

step 5>> now take this number from step 4 and raise the number of power of the total months of finance i.e 1.00575^(72)= 1.51106 (note we have given 6 years of finance therefore 6*12=72 months) divide the result from 1 or we can say do the reciprocal we get 1/1.51106 = 0.66179 now substract this number from 1 we get 0.33821

Final step>> divide the amount from step 3 $ 210.4615 from the above number from step 5 i.e. 0.33821

we get monthly payment as $622.27

Cheers!!

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.