Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Durham Auto is a family-owned new and used car dealership, specializing in quality GM models for every budget and style. You have been recently hired
Durham Auto is a family-owned new and used car dealership, specializing in quality GM models for every budget and style. You have been recently hired as a salesperson and you decided to create a simple VBA application to help you calculate auto loan payments based on the following information. The interest rates and periodic payments are calculated as follows: 1) Interest Rate If the loan term is less than or equal to 3 years, the interest rate is 1.5%. If the loan term is greater than 3 years but less than or equal to 5 years, the interest rate is 2.5%. If the loan term is greater than 5 years, the interest rate is 4%. 2) The loan payment calculations done using a VBA function called Pmt(Rate, NPER, PV). Rate: is a number specifying interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083 NPER: is a number specifying total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods. PV: is an amount specifying present value (or loan amount). For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you will make. Note: for the bi-weekly payment you must divide the rate by 26 and multiply the term by 26. Also, for the weekly payment you must divide the rate by 26 and multiply the term by 26
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started