Objective: The assignment will help you to understand how changes in loan terms and payments will affect the total amount you pay.

• Create an amortization table in Excel for a new car loan for 30,000 for six years at 5%. Determine the total amount of interest you will pay on this loan.
• Copy the table from Step 1, make an extra principal payment of $2,000 on the first day of year two. How does this change the total interest you will pay on this loan?
• Create an amortization table in Excel for a new car loan for 30,000 for three years at 5%. Determine the total amount of interest you will pay on this loan.
• Copy the table from Step 3, change the interest rate to 2%. How does this change the total interest that you will pay on the loan?
• What is the total amount you will pay for the car (principal and interest) in each of the steps 1,2,3 and 4.

Assignment requirements:

Any calculations must be turned in via Excel