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Modeling, Sensitivity Analysis & Financial Excel Functions Pls solve it through excel and also do modeling Sara is going to buy a new car. The
Modeling, Sensitivity Analysis & Financial Excel Functions
Pls solve it through excel and also do modeling
Sara is going to buy a new car. The amount of money he needs to borrow (with a 4-year repayment period) depends on the monthly payments he can afford. she is unsure about the annual interest rate she will receive. Assume the following values:
- Monthly Payment 150 BHD
- Annual Interest Rate 5%
Questions:
- How much would be the Loan Amount and the Total Monthly Payment after 4 year?
- Using this loan amount can Sara buy a car with price 7,000 BHD?
- If Sara wants to buy a car with price 7,000 BHD, how much should be the Monthly Payment?
- Determine how Loan Amount varies as amount monthly payments from 100 BHD to 200 BHD and as annual interest varies from 5% to 9%.
- If Sara can pay only 150 BHD as Monthly Payment, explain how the interest rate will affect the Loan amount (from the data table in Q4).
- If the maximum Loan Amount are limited to 6,000 BHD, how high an annual interest rate can she tolerate?
- Create a report showing Loan Amount, Total Payment and the difference between Total Payment and Loan Amount for the following scenarios, If Sara wants to buy a car with price 7,000 BHD which Scenario will be the best and why?
| Lowest payment | Most-likely payment | Highest payment |
Years | 4.50 | 4.00 | 3.50 |
Interest Rate | 7.0% | 5.0% | 4.0% |
Amount paid each month | $140.00 | $160.00 | $180.00 |
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