CPT101

Excel Loan - Investment Project

Case 1: Case 2:

Use savings to purchase a used car with a value equal to

Purchase new car using savings
as down payment for loan
the 20% down payment required if you had borrowed the
money to purchase a new car. .
Plan on a $50/month allowance for maintenance of used
car.
Pay the same amount as the loan repayment, less the
monthly maintenance allowance, in an investment.

Purchase Price of New Car $25,000

Down Payment (20% or
Purchase Price) $5,000
Annual Interest Rate 5% Annual Investment Return 5%
Term (Years) 7 Term (Years) 7

Monthly Interest Rate 0.417% Monthly Investment Return 0.417%

Term (Months) 84 Term (Months) 84

Amount Financed $20,000 Monthly Investment $282.68

Monthly Payment $282.68 Monthly used car maintenance allowance $50
Net monthly investment $232.68
Total Repaid $23,744.97
Total cost of car $28,744.97

Value of car after term 0 Future Value of Investment $23,344.29

indicates formulas (dependent variables)

indicates independent variables
1
ent Project

Enter FORMULAS or FUNCTIONS for all

dependent variables. All cells with yellow fill
must have formulas or functions inserted.
No NUMBERS or VALUES are allowed for
dependent variables.

After entering correct formulas and functions,

for the dependent variables, change the
values of independent variables to test your
completed project.
Amount Financed $20,000

Annual Interest Rate 5%

Term (Years) 2 90
80
Monthly Interest Rate 0.417% 70
Term (Months) 84 60

Axis Title
50
Monthly Payment $282.68 40
30
Remaining 20
Remaining Interest Principal Total Principal 10
Month Principal Payment Payment Payment Balance 0
1 2
1 $20,000 $83.33 $199.34 $282.68 $19,800.66
2 $19,800.66 $82.50 $200.18 $282.68 $19,600.48
3 $19,600.48 $81.67 $201.01 $282.68 $19,399.47
4 $19,399.47 $80.83 $201.85 $282.68 $19,197.62
5 $19,197.62 $79.99 $202.69 $282.68 $18,994.94
6 $18,994.94 $79.15 $203.53 $282.68 $18,791.40
7 $18,791.40 $78.30 $204.38 $282.68 $18,587.02
8 $18,587.02 $77.45 $205.23 $282.68 $18,381.79
9 $18,381.79 $76.59 $206.09 $282.68 $18,175.70
10 $18,175.70 $75.73 $206.95 $282.68 $17,968.76
11 $17,968.76 $74.87 $207.81 $282.68 $17,760.95
12 $17,760.95 $74.00 $208.67 $282.68 $17,552.27
13 $17,552.27 $73.13 $209.54 $282.68 $17,342.73
14 $17,342.73 $72.26 $210.42 $282.68 $17,132.31
15 $17,132.31 $71.38 $211.29 $282.68 $16,921.02
16 $16,921.02 $70.50 $212.17 $282.68 $16,708.85
17 $16,708.85 $69.62 $213.06 $282.68 $16,495.79
18 $16,495.79 $68.73 $213.95 $282.68 $16,281.84
19 $16,281.84 $67.84 $214.84 $282.68 $16,067.00
20 $16,067.00 $66.95 $215.73 $282.68 $15,851.27
21 $15,851.27 $66.05 $216.63 $282.68 $15,634.64
22 $15,634.64 $65.14 $217.53 $282.68 $15,417.11
23 $15,417.11 $64.24 $218.44 $282.68 $15,198.67
24 $15,198.67 $63.33 $219.35 $282.68 $14,979.32

#VALUE!
#VALUE!
#VALUE!
#VALUE!
 Chart Title
90 $900.00
80 $890.00
70 $880.00
60 $870.00
$860.00
Axis Title

Axis Title
50
$850.00
40
$840.00
30 $830.00
20 $820.00
10 $810.00
0 $800.00
1 2 3 4 5 6 7 8 9 101112131415161718192021222324

Axis Title

Interest Principal
Payment Payment