Question

11 You just bought a car with loan of $80,000. You have to repay the loan in 7 years with monthly payments. The interest rate on the loan is 4%. of How much will you still owe after 3 years? Select one: a. $928.97 b. $77511.21 do o c. $48430.04 d. $1093.50 e. $37037.84 12 Janice has $5,000 invested in a bank that pays 5.2% annually. How long will it take for her funds to triple? aved of Select one: a. 22.10 years b. 18.26 years c. 21.67 years d. 15.16 years

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

А в с D 2 $80,000.00 4 11 Car Loan Term in years APR Monthly interest rate No. of monthly repayment Monthly payment amount 5 4% 0.333% 84 $1,093.50 9 Remaining monthly payment after 3 years 48|| 10 11 Balance of Loan after 3 years $48,430.04 (c.) 13 14 | 15 12 Amount invested Future value Annual interest rate $5,000.00 $15,000.00 5.20% No. of years to triple the amount 21.67 years (c.)

Cell reference -

А B Ο Ε 1 2 11 80000 Car Loan Term in years APR Monthly interest rate No. of monthly repayment Monthly payment amount 0.04 =C4/12 =C3*12 =PMT(C5,C6,-C2,,0) Remaining monthly payment after 3 years =C6-3*12 Balance of Loan after 3 years =PV(C5,C9,-C7,,0) (c.) 12 13 14 12 15 Amount invested Future value Annual interest rate 5000 =C14*3 0.052 No. of years to triple the amount =NPER(C16,,C14,-C15,0) years (c.)

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.