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You want to purchase a new car. Your current car is worth $3,500 as a trade-in. The base sticker price on the car you want is $24,595. The first financing offer from the dealer is 1.9% APR for 24 months, with no cash back. The original financing offer terms are listed in cells A3:B9 on the Car Loan worksheet. Cell B10 contains a formula with a PMT function to calculate the monthly payment. Use what-if analysis tools to compare financing options. Create scenarios to compare financing options for the car loan. How do you create these scenarios?
- Create a scenario named Original Financing to save the original values in cells B3, B5, B8, and B9. - Create a second scenario named Intermediate Car. Change the values as follows: -Cell B3: 33999 -Cell B5: 1500 -Cell B8: 36 -Cell B9: 2.4% - Show the Intermediate Car scenario to verify your data entry. - Create a third scenario named Luxury Car. Change the values as follows: -Cell B3: 62700 -Cell B5: 2500 -Cell B8: 60 -Cell B9: 3.9% - Show the Luxury Car scenario to verify your data entry. - Create a scenario summary report to compare the results for cells B10 (the monthly payment) and B12 (the total cost of the car including interest).
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