Assume Sports Plus can negotiate the interest rate from Bank 2. What interest rate should they request to make the total interest paid in the loan from Bank 2 equal to the total interest paid in the loan from Bank 1? Use Goal Seek.

, A B D E F G H E Loan Option Analysis $250,000 0% 3.5% 7 12 Bank 1 Sensitivity of the Monthly Payment to changes in the Down Payment $3,359.96 $32,236.86 Bank 1 Loan Amount - Down Payment Annual Interest Rate Term of Loan (in years) Number of payments per year 1 2 Monthly Payment 3 Total Interest Paid 4 5 Bank 2 6 Loan Amount 7 Down Payment 8 Annual Interest Rate 9 Term of Loan (in years) Number of payments per year 1 2 Monthly Payment 3 Total Interest Paid 0% $3,359.96 5% $ 3,191.96 10% $ 3,023.97 15% $ 2,855.97 20% $ 2,687.97 $ 200,000 5% 4.0% 10 12 $1,923.66 $30,838.92 4 G19 fac D E H 1 J K 8 9 A B C F G o Number of payments per year 12 1 2 Monthly Payment $1,923.66 3 Total Interest Paid $30,838.92 4 5 6 Bank 2 7 Sensitivity of the Total Interest Paid to Changes in Interest Rate and Loan Term Term of Loan (in years) 9 $30,838.92 4 5 6 7 8 10 0 3.00% $ 1,865.06 $ 4,843.07 $ 7,849.49 $ 10,884.27 $ 13,947.39 $ 17,038.82 $ 20,158.50 1 1 3.25% $ 2,874.32 $ 6,112.03 $ 9,383.04 $ 12,687.34 $ 16,024.86 $ 19,395.57 $ 22,799.39 2 3.50% $ 3,886.73 $ 7,385.89 $ 10,923.67 $ 14,500.02 $ 18,114.86$ 21,768.14 $ 25,459.78 3.75% $ 4,902.28 $ 8,664.67 $12,471.36 $ 16,322.29 $ 20,217.38 $ 24,156.53 $ 28,139.63 4 4.00% $ 5,920.98 $ 9,948.35 $ 14,026.10 $ 18,154.15$ 22,332.38 $ 26,560.68 $ 30,838.92 5 4.25% $ 6,942.82 $ 11,236.94 $ 15,587.90 $ 19,995.58 $ 24,459.86 $ 28,980.58 $ 33,557.58 6 4.50% $ 7,967.79 $ 12,530.42 $17,156.73 $ 21,846.57 $ 26,599.80 $ 31,416.20 $ 36,295.57 7 4.75% $ 8,995.91 $ 13,828.80 $ 18,732.59 $ 23,707.11 $ 28,752.16 $ 33,867.50 $ 39,052.85 8 5.00% $ 10,027.16 $ 15,132.06 $20,315.48 $ 25,577.19 $ 30,916.94 $ 36,334.45 $ 41,829.37 9 5.25% $11,061.54 $ 16,440.22 $ 21,905.38 $ 27,456.78 $ 33,094.11 $ 38,817.00 $ 44,625.08 0 5.50% $12,099.05 $ 17,753.25 $ 23,502.30 $ 29,345.88 $ 35,283.64 $ 41,315.14 $ 47,439.91 1 3 Interest Rate , A B D E F G H E Loan Option Analysis $250,000 0% 3.5% 7 12 Bank 1 Sensitivity of the Monthly Payment to changes in the Down Payment $3,359.96 $32,236.86 Bank 1 Loan Amount - Down Payment Annual Interest Rate Term of Loan (in years) Number of payments per year 1 2 Monthly Payment 3 Total Interest Paid 4 5 Bank 2 6 Loan Amount 7 Down Payment 8 Annual Interest Rate 9 Term of Loan (in years) Number of payments per year 1 2 Monthly Payment 3 Total Interest Paid 0% $3,359.96 5% $ 3,191.96 10% $ 3,023.97 15% $ 2,855.97 20% $ 2,687.97 $ 200,000 5% 4.0% 10 12 $1,923.66 $30,838.92 4 G19 fac D E H 1 J K 8 9 A B C F G o Number of payments per year 12 1 2 Monthly Payment $1,923.66 3 Total Interest Paid $30,838.92 4 5 6 Bank 2 7 Sensitivity of the Total Interest Paid to Changes in Interest Rate and Loan Term Term of Loan (in years) 9 $30,838.92 4 5 6 7 8 10 0 3.00% $ 1,865.06 $ 4,843.07 $ 7,849.49 $ 10,884.27 $ 13,947.39 $ 17,038.82 $ 20,158.50 1 1 3.25% $ 2,874.32 $ 6,112.03 $ 9,383.04 $ 12,687.34 $ 16,024.86 $ 19,395.57 $ 22,799.39 2 3.50% $ 3,886.73 $ 7,385.89 $ 10,923.67 $ 14,500.02 $ 18,114.86$ 21,768.14 $ 25,459.78 3.75% $ 4,902.28 $ 8,664.67 $12,471.36 $ 16,322.29 $ 20,217.38 $ 24,156.53 $ 28,139.63 4 4.00% $ 5,920.98 $ 9,948.35 $ 14,026.10 $ 18,154.15$ 22,332.38 $ 26,560.68 $ 30,838.92 5 4.25% $ 6,942.82 $ 11,236.94 $ 15,587.90 $ 19,995.58 $ 24,459.86 $ 28,980.58 $ 33,557.58 6 4.50% $ 7,967.79 $ 12,530.42 $17,156.73 $ 21,846.57 $ 26,599.80 $ 31,416.20 $ 36,295.57 7 4.75% $ 8,995.91 $ 13,828.80 $ 18,732.59 $ 23,707.11 $ 28,752.16 $ 33,867.50 $ 39,052.85 8 5.00% $ 10,027.16 $ 15,132.06 $20,315.48 $ 25,577.19 $ 30,916.94 $ 36,334.45 $ 41,829.37 9 5.25% $11,061.54 $ 16,440.22 $ 21,905.38 $ 27,456.78 $ 33,094.11 $ 38,817.00 $ 44,625.08 0 5.50% $12,099.05 $ 17,753.25 $ 23,502.30 $ 29,345.88 $ 35,283.64 $ 41,315.14 $ 47,439.91 1 3 Interest Rate