Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 4-21 When you purchased your car, you took out a five-year annual-payment loan with an interest rate of 6% per year. The annual payment

image text in transcribedimage text in transcribed

Problem 4-21 When you purchased your car, you took out a five-year annual-payment loan with an interest rate of 6% per year. The annual payment on the car is $5,000. You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following scenarios? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. a. You have owned the car for one year (so there are four years left on the loan). b. You have owned the car for four years (so there is one year left on the loan). $ Annual payment Interest rate Number of periods 5,000 6% 5 a. You have owned the car for one year (so there are four years left on the loan)? Number of periods 4 Payoff amount b. You have owned the car for four years (so there is one year left on the loan)? Number of periods 1 Payoff amount A positive value is expected. Requirements 1 In cell D16, by using cell references, calculate the payoff amount under the first scenario (1 pt.). Note: The output of the expression or function you typed in this cell is expected as a positive number. 2 In cell D22, by using cell references, calculate the payoff amount under the second scenario (1 pt.). Note: The output of the expression or function you typed in this cell is expected as a positive number

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Healthcare Finance An Introduction To Accounting And Financial Management

Authors: Louis C. Gapenski

4th Edition

1567932800, 978-1567932805

More Books

Students also viewed these Finance questions

Question

Why must a business manage information as a resource?

Answered: 1 week ago