27 Mar What is your total paid interest for the term of the loan from the Amortization Schedule?

NOTE: There are 2 parts to this assignment. First, you will create an Amortization Schedule for a new (or used) vehicle of your choice. The second half of this assignment asks you to create a second amortization schedule for a home, land, or commercial building/land you may be interested in.

Part 1: Vehicle Major Purchases

Using MS Excel, create an amortization schedule for a car loan. There is an Amortization schedule attached to this assignment for you to use for this and the Part 2 portion of this exercise. Fill out the schedule with data using a vehicle purchase you research on the Internet. Use a reasonable price from Kelly Blue Book or from an online “build your own” resource. Make sure you complete the Amortization schedule to completely pay off your vehicle

Note: you will need to highlight the last row and use the pulldown cross in the right corner of the highlighted row to add additional rows until you see your asset paid off completely.

Answer the following Six questions in some detail at the bottom of the same Excel file (see below). Finally, on the last page of the Excel file, answer the following questions by creating a Text box below your Amortization Schedule:

Note iIn excel go to “Insert” then “Text,” then Create a text box. Create a textbox that is approximately 5″ by 5″. Then copy and paste these questions and then answer in the same textbox):

What is your payment per month?

What is your total paid interest for the term of the loan?

How long is the term for your loan? Why did you choose this term length?

What interest rate did you use AND how did you obtain a legitimate interest rate.

What did you learn from this exercise about incurring debt to purchase this vehicle?

Is this car affordable in your budget at this time?

Part 2: Home, Land, or Commercial Property Major Purchase

Using a second MS Excel spreadsheet, create another amortization schedule for a property you may consider buying some time in the future. Use a reasonable value for the investment by searching with a multiple listing in your area.

Next, find a lender that will talk to you and get an interest rate and loan period that they think would be reasonable for each purchase (they will be different). Most, if not all, lenders are willing to help with a project like this, so talk to someone you are familiar with and get them to help with a loan period and interest rate. Make sure you complete the Amortization schedule to completely pay off the property.

Finally, on the last page of your excel file, answer the following in some detail in another textbox at the end of your amortization schedule:

Describe what property you are wanting to invest in.

What is a reasonable price for the property and what resource did you use to come to that price?

How much do you want to borrow, and how much are you contemplating as an initial investment (down payment) on the property?

Who did you talk to about an interest rate? How long are you financing the purchase for and what interest have you found a lender would give you?

What is your total paid interest for the term of the loan from the Amortization Schedule?

What have you learned from this exercise?