SCENARIO NO.1 Assume you are a Broker. Provide the following information for you client.

Purchase a Company Executive Car:

Your client is the CEO of a high tech business and she requires a new car. She has hired your brokerage company to find suitable transportation for business. She entertains and meets with many foreign business people so company image is important. She will use a company chauffer.

Provide your client with 3 different car model options. You select the recommended car for the client.

Go Online and google Executive Car Sales.

1. You determine the down payment.

2. Determine what your bank loan will be.

3. Calculate the interest rate and make sure the Rate is describe and displayed when you format your assignment. DO NOT USE an Internet purchase calculator. This MUST be calculated in Excel.

4. Calculate what your monthly payments would be if the loan was amortized over the following terms.

a. 3 years

b. 5 years

c. 7 years

1. You must display all 3 (Monthly) Calculations in your workbook using the PMT Function. The client would like to know what Monthly Payment Options would be.

5. Provide 3 different car options to your client to select from.

6. You can use the same Rate for all 3 car calculations.

7. Use the Prime Rate of 3.25% as your base Rate. Add 2.75% to the Banks Prime rate to determine the Consumer loan Interest Rate. Make sure you read this section carefully! NOTE: Banks will always add an additional Bank Prime Rate to the Basic Prime when you take out a loan Rate.

8. Provide 3 various down payment options. NOTE: You cannot borrow money from the bank if you do not invest some of your own money. Make up your down payment.

9. From the 3 possible cars you have provided for your client you are to select one of them as your recommendation. Insert a photograph of the recommended car purchase into your client Excel presentation sheets.

10. Provide a brief description of the car.

11. Invoice this client just for your services.

12. Use an Excel Invoice Template Simple Invoice included in the Moodle File to bill your client.

13. Include a GST tax of 6% for your services and calculate the results.

14. REMEMBER The client will pay for their own products.