Pick out a car that you would like to own, and get a price for it from the newspaper. Using an Excel spreadsheet, figure out what the payments would be at a 0% promotional rate over 3 years and 5 years. (You can use the Financial Function PMT to do this.) Then, do the same calculation with interest rates of 5% and 8%. Figure out the total cost of the car under each of the scenarios. Write a couple of sentences telling me what you learned.
This is due with the rest of your Chapter 5 homework.
Either attach the spreadsheet to your e-mail (preferred) or paste the results into your e-mail.
This is a good assignment to work on with your study group.
Not required, but if you are into it you might want to try:
Produce amortization schedules (see page 133 in the text) using each of the six scenarios.