Solve all of the following problems with Excel.

Please use formulas in excel to solve. (10 pts)

Problem 1

(10 pts)

(a) Assume monthly car payments of $500 per month for 4 years and an interest rate of 0.75% per month.

1. What initial principal will this repay?

(b) Assume annual car payments of $6000 for 4 years and an interest rate of 9% per year.

1. What initial principal will this repay?

(c) Assume monthly car payments of $500 per month for 4 years and an interest rate of 7% per year.

1. What initial principal will this repay?

2. Prepare a loan payment schedule showing the payments and interest for the life of the loan.