Kim wants to buy a car. Help Kim compute the monthly payment on a loan, given the loan amount, the annual percentage rate of interest, and the number of monthly payments. The program should allow Kim to input the loan amount, interest rate, and how many payments she wants to make. It should then compute and display the monthly payment. You will need the following variables:

Payment Loan
Amt InterestRate
MonthlyRate
NumberMonths

This can be achieve using Microsoft Excel Spreadsheet. Please find attached the Excel file

Explanation:

we will need the following variables:

For clarity of will assume the following

Price of Car = $30,000

No. of Payment (Down Payment)= $10,000

Loan Amount =$20,000

Interest Rate = 15%

Number of Months =12

Repayment =12

We will need the following formulas:

Interest Rate =15/100 =0.15

Monthly Rate = Interest Rate/12 = 0.0125

Payment =[ LoanAmt * MonthlyRate * (1 + MonthlyRate)^NumberMonths]÷ [((1 + MonthlyRate)^NumberMonths) – 1]

Let LA= Loan Amount

MR= Monthly Rate

n=Number of Months

Payment = LA*MR*(1+MR)^n/(( 1+MR)^n-1)

Now (1+MR)n = (1+0.0125)^12 = 1.1608

Payment = (20,000*0.0125*1.1608)/(1.1608-1)

Payment = 290.2/0.1608 =1,804.7

This can be implement using a Microsoft Excel spreadsheet. Please find attached the Excel spreadsheet.

The INPUTS are the column whose heading is in green. The Variable is the column whose heading is in blue color.

PAYMENT is the last column in the Excel spreadsheet.

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