Create a complete amortization schedule for the car

Assignment Help Accounting Basics
Reference no: EM131015613

The scenario is designed to help you determine and evaluate the payment amount of a car loan and a mortgage, based on the assumption that your household income is $36,000 per year or $3,000 per month. Based on your income, you may spend 28% of your monthly income on housing, and 10% on a car loan. You are to put a 3% down payment on the house and a 10% down payment on the car.

Required:

Using Microsoft Excel, address the following issues:

1. What is the maximum car payment and mortgage payment you can afford with the following conditions: your monthly household income, 10% for the car payment, and 28% for the mortgage payments?

2. Assume a 10% down payment on the car and a 3% down payment on the house. Also, assume that you can get financing for the car at 7% for 60 months, and the house can be financed at 5% for 30 years. How much could you spend on the car and the house? You must submit your calculations in a Microsoft Excel document showing how answers were reached.

3. Create a complete amortization schedule for the car, using the information in questions 1 and 2.

4. Discuss the distributions of principal, interest and the balance over the life of the loan.

Reference no: EM131015613

Questions Cloud

Prepare a schedule of debt reduction : Prepare all the necessary journal entries on the books of Crocker Corp. for the years 2014, 2015, and 2016.
Which of the following is not a renewable resource : Which of the following is not a renewable resource?Select one:a. the sun beating down on a rain foresb. plants, such as bamboo and rice, growing in moist environmentsc. oil reserves, buried deep below the surface of the groundd. water flowing through..
Which nutrient enters an ecosystem : Which nutrient enters an ecosystem from a geologic rather than atmospheric reservoir? Select one:a. carbonb. phosphorusc. nitrogend. oxygen
Which of the biomes below could be described : Which of the biomes below could be described as one with cold winters and mostly coniferous trees receiving low amounts of rain each year?
Create a complete amortization schedule for the car : Create a complete amortization schedule for the car, using the information in questions 1 and 2.
How is the value of it assessed in your organization : What is the level of IT-business integration for your organization? How is the value of IT assessed in your organization? How might your organization improve IT strategic alignment with business
Calculate the amount of the revised annual payment : A man has a 30-year loan with level end of year payments. The principal repaid in year 5 is 159.68 and in year 10 is 213.73. What is the payment - What was the nominal interest rate convertible quarterly for the last 2 years?
Comparing walmart and amazon business models : Analyze the case study comparing Walmart and Amazon's business models and business strategies
What is the value of the inductance l : The figure shows voltage and current graphs for an inductor. What is the emf frequency f? What is the value of the inductance L?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Project is on the coca-cola company

Project is on the Coca-Cola Company

  Carlisle company is a manufacturer of precision

carlisle company is a manufacturer of precision surgicaltools. it initiated standard costing and a flexible budget on

  What is the most you should pay for this investment

Your investment adviser wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for this investment?

  Present some arguments to convince him

Present some arguments to convince him that accounting data should still be based on cost.

  What governing bodies set accounting standards

Financial statements are prepared in accordance with what? What governing bodies set accounting standards? Why do you think financial statements are required to be prepared using the same standards?

  Which of the following statements is true regarding

which of the following statements is true regarding variable costing? it is not permitted to be used for managerial

  Essay on the role of the endocrine system

Write a 350-to-500-word essay on the role of the endocrine system and its effects on behavior. Identify two hormones that influence behavior. Indicate which glands are responsible for secreting the hormones, the function of the glands in the endo..

  Journal entries and t-accounts for decort company

DeCort Company had these adjusting entry situations at the end of December:May 1-paid $960 for a two -year insurance policy. The policy was for the period May 1-April 30(for 2yrs). This is the first year of the policy-Transaction was recorded as i..

  Delphi companyreduced its other post reitrement benefits by

delphi companyreduced its other post reitrement benefits by approx 500 millionbecause of a change in the law. the

  What additional taxes will avi and rianna face as a married

They each earn a salary of about $150,000, have some investment income and some itemized deductions. What additional taxes will Avi and Rianna face as a married couple?

  Problem on effective interest method

Gross proceeds from the offering amounted to $850,000,000. The discount on the Senior Discount Notes is being accreted under the effective interest method.

  The management of freshwater corporation is considering

the management of freshwater corporation is considering dropping product c11b. data from the companys accounting system

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd