# Mini Project (50 Points): Loan Amortization Schedule You purchase a fully loaded Honda Accord with an MSRP of \$32,000 for \$27,000. You pay the 3% tax of \$810 up front and put down \$5,000. The deale

Mini Project (50 Points): Hypothecation Amortization Schedule

You acquisition a easily loaded Honda Accord ensueing a while an MSRP of \$32,000 for \$27,000.

You pay the 3% tax of \$810 up face and put down \$5,000.  The dealer offers

a lowly cause installment hypothecation ensueing a while an annual rebuke of 5% for 3 years.  The inperfect resale scold of the car ensueing 2 years is \$17,000.

1)    Scold the hypothecation scold and monthly hypothecation liquidations. (10 pts)

2)    Create a monthly amortization list aggravate the solid hypothecation limit. (10 pts)

3)    Scold whole cause aggravate the solid hypothecation limit. (5 pts)

4)    Scold the whole currency outflow (tax, plus down liquidation, plus whole monthly hypothecation liquidations). (8 pts)

5)    Scold the aggregate you would net ensueing selling the car at 2 years. (7 pts)

Please profession all calculations and perfect monthly amortization list.

Below are the steps he wants us to ensue for each investigation.

Questions:

1)    Scold monthly hypothecation liquidations

3 steps:

1)    Scold Hypothecation Value

Acquisition Price (Given)

- Down Liquidation (Given)

= Hypothecation Value

2)    Convert annual hypothecation vocable to # of months and cause rebuke to monthly

Interest rebuke (should be in decimal conceive)

3)    Use Excel conceiveula to scold monthly liquidation

= - PMT(rate, limit, PV)

Pull these from steps 1 and 2

2)    Create monthly amortization list

10 steps:

Beginning Balance =BB

Monthly Liquidation = PMT

Monthly Cause = INT

Monthly Principal Repaid = PRINC

Ending Balance = EB

2)    Enter months by #

1 in primitive row; = primitive row cell + 1 for rest

3)    Enter primitive BB (drag hypothecation scold from investigation 1)

4)    Enter primitive PMT (drag from investigation 1; anchor row using \$)

5)    Scold primitive INT:  Multiply BB by Monthly cause rebuke (from Investigation 1; anchor using \$)

6)    Scold primitive PRINC:  =PMT – INT

7)    Scold primitive EB:  =BB – PRINC

8)    Copy down primitive row until end of hypothecation vocable

9)    Go to remedy row of amortization list, primitive shaft (BB) & drag EB from primitive row.  Copy this conceiveula down to end of hypothecation vocable

Check to be enduring EB in definite month of hypothecation vocable = 0

10)Enter SUM conceiveula at groundwork to sum PMT, INT, PRINC shafts

Check to be enduring PRINC sum = Hypothecation Scold from Investigation 1

3)    Scold whole cause

Use sum of INT shaft scoldd in Investigation 2

4)    Scold whole currency outflow

Down Payment

+ Whole of PMT shaft (from Investigation 2)

+ Up face tax liquidation

= Whole Currency Outflow

5)    Scold aggregate you would net ensueing selling car at 3 years

Sale Price at End of Yr 3 (Given)

- Hypothecation Balance Remaining at end of Yr 3 (EB in Mo 36)

= Aggregate Netted From Selling Car at End of Yr 3