You just graduated college with your Bachelors Degree in accounting and accepted a job offer at your dream company. You decided to celebrate by purchasing the vehicle of your dreams (think big, for this class's sake. Pictured is a Mercedes Convertible see picture above for $67,300). You have a 720 credit score, therefore you were able to get a 5% interest rate on a 7 year loan. You will be making annual payments. Using Excel, prepare a professional amortization schedule for the entire 7 years. It must include the payment and the total amount of interest you will pay over the 7 years. The Excel cells must contain formulas and cell referencing when appropriate, both relative and absolute.

Present two additional amortization schedules using 6% and 7% and answer the following questions:

What happens to the total cost for the car (principle and interest) when the interest is increased by only 1 or 2 percent?

What do you think about the reverse side of this, that is to say, receiving this type of interest payments for loaning money to others for these interest rates?

Lastly, indicate if you would purchase a vehicle that costs this much, and why.