Question

Submit your spreadsheet file here. You should use the template in the attached file. There are two scenarios, so you should submit one excel file with two taba one tab for each scenario. Scenario 1: You buy a car and borrow $18,000, with interest at 7.5% per year, to be repaid over 48 months (4 years). Scenario 2: the same as before, except that the interest rate is 12% per year. Answer the questions on the Questions tab.

Answer 1

1. if the car buy in the cash than you are pay only $18,000 but if you buy at 7.5% interest than you pay interest every year is :

principle amount [$ 18000 ]	YEAR	interest[@7.5%]
	1	1350
	2	1350
	3	1350
	4	1350

than reason total amount payable at the end is =$18000+5400=$ 23400

principle amount [$ 18000]	year	interest [12%]
	1	2160
	2	2160
	3	2160
	4	2160

than reason total payable amount= $18000+8640=$26640
net difference= $ 3240
2. applied to interest:
amount is =$18000
year = 3 years
rate of interest =7.5%

year	amount	installment	remaining amount	interest
1	18000	6000	12000	900
2	12000	6000	6000	450
3	6000	6000	0	0