You are budgeting for the purchase of a new automobile. You are evaluating your expenses to determine the monetary resources available for a monthly payment. As part of the project you will perform What-IF Analysis and complete an amortization schedule.
For the purpose of grading the project you are required to perform the following tasks:
Download and open the file namedexploring_e06_grader_a1.xlsx, and then save the file ase06c2auto loan_LastFirst, replacing “LastFirst” with your name.
Use Goal Seek to set the monthly payment of the auto loan to$305.69 (15% of available capital) by changing the purchase price in cell E4.Beginning in cell G3, complete the series of loan amount values ranging from $16,000 to $30,000 in $500 increments in cells G3:G31.
Hint: On the DATA tab, in the Data Tools group, click What-If Analysis, then click Goal Seek. On the HOME tab, in the Editing group, use the Fill tool to complete the substitution values.
Enter references for monthly payment, percent of total, and insurance premium in the cell H2, cell I2, cell J2 respectively for a one-variable data table.
Hint: Create linking formulas to cells E12, E15, and E17. Cell references are preceded by the = sign.
Complete the one-variable data table using Amount of Loan as the column input cell, and then ensure the results for monthly payment and insurance premium are formatted as Accounting Number Format with two decimal places. Format percent of available income as Percentage Number Format.
Hint: On the DATA tab, in the Data Tools group, click What-If Analysis, then click Data Table. On the HOME tab, in the Number group, click the Format Cells: Number Dialog Box Launcher to format the results.
Apply custom number formats to make the formula references appear as the following descriptive column headings: H2-Monthly Payment, I2-% of Available Income, J2-Insurance Premium.
Hint: On the HOME tab, in the Number group, click the Format Cells: Number Dialog Box Launcher. Enter text in quotation marks to create the custom number formats.
Copy the loan amount values from the one-variable table into the two-variable table starting in cell L3 (Hint: copy the loan amount values from G3:G31).
Hint: Copy the values in cells G3:G31 and paste them starting in cell L3.
Type 3.00% into cell M2. Complete the series from 3.00% to4.25% in .25% increments.
Hint: On the HOME tab, in the Editing group, use the Fill tool to complete the substitution values.
Enter the reference to the monthly payment formula in the cell L2 for a two-variable data table.
Hint: Cell references are preceded by the = sign.