Mini Project (50 Points): Loan Amortization Schedule You purchase a fully loaded Honda Accord with an MSRP of $32,000 for $27,000. You pay the 3% tax of $810 up front and put down $5,000. The dealer offers a simple interest installment loan with an annual rate of 5% for 3 years. The projected resale value of the car after 2 years is $17,000. 1) Compute the loan value and monthly loan payments. (10 pts) 2) Create a monthly amortization schedule over the entire loan period. (10 pts) 3) Compute total interest over the entire loan period. (5 pts) 4) Compute the total cash outflow (tax, plus down payment, plus total monthly loan payments). (8 pts) 5) Compute the amount you would net after selling the car at 2 years. (7 pts) 6) Does the principal portion of the payment increase or decrease as the months progress? (5 pts) 7) Does the interest portion of the payment increase or decrease as the months progress? (5 pts) Please show all calculations and complete monthly amortization schedule. Mini Project (50 Points): Loan Amortization Schedule You purchase a fully loaded Honda Accord with an MSRP of $32,000 for $27,000. You pay the 3% tax of $810 up front and put down $5,000. The dealer offers a simple interest installment loan with an annual rate of 5% for 3 years. The projected resale value of the car after 2 years is $17,000. 1) Compute the loan value and monthly loan payments. (10 pts) 2) Create a monthly amortization schedule over the entire loan period. (10 pts) 3) Compute total interest over the entire loan period. (5 pts) 4) Compute the total cash outflow (tax, plus down payment, plus total monthly loan payments). (8 pts) 5) Compute the amount you would net after selling the car at 2 years. (7 pts) 6) Does the principal portion of the payment increase or decrease as the months progress? (5 pts) 7) Does the interest portion of the payment increase or decrease as the months progress? (5 pts) Please show all calculations and complete monthly amortization schedule
