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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:

  1. How much would be the Loan Amount and the Total Monthly Payment after 4 year?
  2. Using this loan amount can Sara buy a car with price 7,000 BHD?
  3. If Sara wants to buy a car with price 7,000 BHD, how much should be the Monthly Payment?
  4. Determine how Loan Amount varies as amount monthly payments from 100 BHD to 200 BHD and as annual interest varies from 5% to 9%.
  5. 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).
  6. If the maximum Loan Amount are limited to 6,000 BHD, how high an annual interest rate can she tolerate?
  7. 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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