You want to acquire your first vehicle and you have visited several dealers looking at different options, the option that you liked the most is the Renault one and you have decided on a Sandero Polar whose value is $ 38,690,000 for the version that interests you. To finance this value you have two options

Bank A, which offers financing of 100% of the value of the vehicle at a nominal annual rate of 18% and 48 equal installments.

Bank B offers you 100% financing at an annual rate of 15% capitalized quarterly and a 5-year term, paying equal installments every month.

It is requested:

• Make an amortization table for each option; The table should show the beginning and ending balance from installment one to the last installment of the loan; Also the value of the installment to pay each month and of this value how much corresponds to the capital payment and how much is the interest payment from installment one to the end of the loan

• Assuming that your liquidity allows you to pay either of the two installments of the options you have. Choose which would be the best, why?

RUBRIC

The work must be submitted in Excel.

The cells must be formatted (eg: $, thousands ... etc).

The amortization tables for each option must be presented on separate sheets.

There should be a final sheet that should show the summary of the two options, which is the chosen option and the justification for why it was chosen.