54 Problem 2: You are planning to purchase a car that costs $20,000. You want to shop around and compare different loan rates and terms before you make a decision. Now you'll want to use a Table to compute your total interest and principal so they can be 55 compared 56 57 Loan Amount-20000 58 Annual Interest Rate see table Step 1.In cell D64 enter. =PMT(C64/12 SE$60.SES57) 59 Term of Loan in Years 5 Watch S signs. Copy by dragging the cursor. 60 Total number of months 60 Excel function: PMT=(rate, term, principal) 61 Divide the interest rate by 12 to convert to monthly 62 With Various Interest Rates: 63 Rate PMT Total Interest Interest + Principal 64 2.0% PMT @2%-351 65 3.0% Int+ Prin - 21,033 66 4.0% 67 5.0% 6.0% 69 7.0% 70 8.0% 71 72 Step 2. Total Interest Column: In 564 enter: -D64*60+SE$57 and copy down. 73 Step 3. Total amount paid - Interest + Principal: In G64 enter: = 64-SES57 and copy down. 74 75 With Various Terms (Years): Monthly 76 Years PMT Total Interest Interest + Principal 77 1 Inputs: 78 3 rate 10.12 79 $ loan prin-20000 80 7 term in yrs 12 81 9 82 11 PMT-(tate, term, principal) 12 -0.06/12 yrs 12.-20000) 83 84 Step 1. In cell 077 enter: PMT(SKS78/12,5KS80*12,5KS79) and copy down. Step 2. In E77 enter: -D77*C77"SKS80+$K$79 85 86 87 88 89 90 91 92 93 Step 3. In G77 enter: E77-5KS79 check numbers: 12 yos: pmt=$263, Int+Prin-$37,826 Step 4. Copy down cells in table What is your choice of loan rates and terms? 94