Answer:
This can be achieve using Microsoft Excel Spreadsheet. Please find attached the Excel file
Explanation:
we will need the following variables:
For clarity of will assume the following
Price of Car = $30,000
No. of Payment (Down Payment)= $10,000
Loan Amount =$20,000
Interest Rate = 15%
Number of Months =12
Repayment =12
We will need the following formulas:
Interest Rate =15/100 =0.15
Monthly Rate = Interest Rate/12 = 0.0125
Payment =[ LoanAmt * MonthlyRate * (1 + MonthlyRate)^NumberMonths]÷ [((1 + MonthlyRate)^NumberMonths) – 1]
Let LA= Loan Amount
MR= Monthly Rate
n=Number of Months
Payment = LA*MR*(1+MR)^n/(( 1+MR)^n-1)
Now (1+MR)n = (1+0.0125)^12 = 1.1608
Payment = (20,000*0.0125*1.1608)/(1.1608-1)
Payment = 290.2/0.1608 =1,804.7
This can be implement using a Microsoft Excel spreadsheet. Please find attached the Excel spreadsheet.
The INPUTS are the column whose heading is in green. The Variable is the column whose heading is in blue color.
PAYMENT is the last column in the Excel spreadsheet.
