Price of Car

Manufacturers rebate
Down Payment
Amount to Finance
Interest rate
Term (in years)
Monthly Payment

1. To begin headings have been placed in column A to help set up the numbers. Each
title can be seen starting with Price of Car, followed by the list under it.
2. Next insert the following numbers in the corresponding column next to the title.
Price of Car $19,999
Manufacturers rebate $1,000
Down Payment $5,000
Amount to Finance $13,999
Interest Rate 8%
Term (in years) 4
Monthly Payment- The following equation is entered. You will learn
more about it when we go over the PMT Function
=PMT(B5/12,B6*12,-B4)
3. After entering all these inputs, a price will pop up in the monthly payment box, this
should be $341.76
4. As a consumer we now have a monthly payment for our car. But this is a little too
much for us. We want to bring this down to $320. But how much cheaper of a car
would we need to look at. To do this we use the Goal Seek Command. Go to Tools
and open Goal Seek.
5. Our Set Cell is going to be B7.
6. We want to get the new value to 320, input 320 in To value.
7. Finally we want to achieve this by changing cell B1. Input B1 in By changing
cell, and hit OK.
8. If there is a solution it will now pop up. Was there a solution for a problem? If so
press ok and let it be entered into our chart.

Answer:
Yes, there was a solution. Our monthly payment should be adjusted to $320, and our price of car should now be $19,108.

hould now be $19,108.