Part 2
1. Part 2
Project 4: Final Project
Part 2: Car Expense
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Your friend has decided to buy a used car. After taking the car for a test drive and having a mechanic give it a thorough inspection, she is satisfied that this car is safe. There’s just one decision she needs to make. She needs to decide whether to pay the $11 000 asking price in one payment or take out a loan and repay the loan in $3000 installments once a year for five years. She has come to you for advice. The challenge, then, is to decide which option is best for her—in other words, which one will give her the car for less money!
When you are ready, open the Car Expenses spreadsheet. In this workbook, there are three worksheets: PMT, PV, and RATE.
You are to complete each worksheet using the financial formulas provided. The yellow cells represent cells you are required to complete.