A local car dealer has asked you to develop a spreadsheet-based computer model to assist potential buyers in analyzing various alternatives when purchasing a new car. The worksheet should allow users to specify the Purchase Price of the car, as well as the Down Payment they are thinking of placing at the time of purchase, and the value of the Trade-In vehicle if applicable. The amount of the loan is based on these inputs.

The dealership makes loans of 1-5 years (the following table displays the interest rates based on the term of the loan). You should provide a way for the user to select the number of years for which they would like to take out a loan (you also need ensure that only the values specified for number of years in the table below are allowed, i.e. there cannot be a 2.5 year loan or a 6 year loan, etc).

Term of Loan (years)

1

2

3

4

5

Interest Rate

0.9%

1.9%

3.9%

5.9%

7.9%

Using all of this information, the worksheet needs to display the following information to the customer: Amount Financed (loan), Annual Interest Rate (the value used in the calculations, will be based on user selection of loan term), Monthly Payment, Total Payments (over the term of the loan), and the Finance Charge (difference between the loan amount and the total payments).

We will not set-up the worksheet yet. Before we create the worksheet, we need to ensure that we formulate the model for this problem effectively. We will do this by answering the following questions:

What is the problem statement?
What are the parameters, decisions, outcomes, and structure (calculations/relationships/formulas) in the problem?
Organize this material to create a sketch of your spreadsheet.
Try to think through the formulas in as much detail as possible. You should use the INSERT FUNCTION window in Excel to help you figure out what formulas to use and what arguments would be required.

The post What are the parameters, decisions, outcomes, and structure. Must use EXCEL Functions appeared first on Essaysholic.

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