do an amortization schedule in a spreadsheet for a car loan, the amount is up to you. The annual interest rate on the loan is your choice as well do some research and use a rate that is typical in the market right now. Pay the loan off in 4 years, 48 equal, monthly installments. You will need to set up a general table of facts at the top of the spreadsheet and everything will refer to that table. This will allow you to make changes to the loan (rate, maturity, amount borrowed, etc.) and the spreadsheet will recalculate the schedule for you. This is a MONTHLY LOAN, so you will have

For example, at the top of the page the assumption table will look something like this:

Loan Amount 38,000

Annual Rate 5.75%

Monthly Rate =b2/12

Years 5

Months b4*12

Pmt PMT ()

Use the Excel built in function to calculate the payment but do not use the Excel built in function to do the amortization itself. I want you to set up the amortization schedule with formulas. The key is this: when you make a change to the spreadsheet, everything, including the payment, will recalculate. This is the most important factor in getting 100 points; everything is referenced to the assumptions table at the top of the spreadsheet.

To turn in:

1. The above loan amortization schedule (which includes six columns month, beginning loan balance, payment, interest, repayment of principal, and ending loan balance). This also includes the assumption table (as discussed above). The payment should be calculated using cell references, not using numbers.

2. The formula sheet to accompany the above schedule (i.e., show formulas).

3. Make any change you like to the loan (in the assumption table) and turn in the recalculated spreadsheet. Make only ONE change, not multiple changes!! Highlight the change.