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    Scenario Summary: Cost of Car Down Payment APR Years Monthly Payment Total To Repaid Total Interest Paid

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    Somil Gupta
    The document shows the results of running Solver to minimize the monthly payment for a car loan given constraints on the cost of the car, down payment, annual percentage rate (APR), and number of years for the loan. Solver found a solution with a monthly payment of $700, an APR of 5.1%, and all other constraints were either binding or not binding. It also includes a two-variable data table showing the monthly payment for different combinations of APR and car cost.

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    Scenario Summary: Cost of Car Down Payment APR Years Monthly Payment Total To Repaid Total Interest Paid

    Uploaded by

    Somil Gupta
    80 views5 pages
    The document shows the results of running Solver to minimize the monthly payment for a car loan given constraints on the cost of the car, down payment, annual percentage rate (APR), and number of years for the loan. Solver found a solution with a monthly payment of $700, an APR of 5.1%, and all other constraints were either binding or not binding. It also includes a two-variable data table showing the monthly payment for different combinations of APR and car cost.

    Original Title

    e06_script_data

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    The document shows the results of running Solver to minimize the monthly payment for a car loan given constraints on the cost of the car, down payment, annual percentage rate (APR), and number of years for the loan. Solver found a solution with a monthly payment of $700, an APR of 5.1%, and all other constraints were either binding or not binding. It also includes a two-variable data table showing the monthly payment for different combinations of APR and car cost.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    80 views5 pages

    Scenario Summary: Cost of Car Down Payment APR Years Monthly Payment Total To Repaid Total Interest Paid

    Uploaded by

    Somil Gupta
    The document shows the results of running Solver to minimize the monthly payment for a car loan given constraints on the cost of the car, down payment, annual percentage rate (APR), and number of years for the loan. Solver found a solution with a monthly payment of $700, an APR of 5.1%, and all other constraints were either binding or not binding. It also includes a two-variable data table showing the monthly payment for different combinations of APR and car cost.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5
    At a glance
    Powered by AI
    The document discusses different scenarios for car loans including best, worst, and most likely cases. It analyzes variables such as cost of car, down payment, APR, and number of years for the loan.

    The document is discussing the results of using the Solver tool in Excel to analyze different scenarios for taking out an auto loan to purchase a car.

    The data table analyzes different combinations of cost of car, APR, and number of years for the loan.

    Scenario Summary

    Best-Case Scenario Worst case Most Case


    Changing Cells:
    Cost of Car $ 45,000.00 $ 45,000.00 $ 45,000.00
    Down Payment $ 8,000.00 $ 12,000.00 $ 10,000.00
    APR 3.25% 6.50% 4.50%
    Years 4 6 5
    Result Cells:
    Monthly payment $823.06 $554.73 $652.51
    Total To Repaid $ 39,507.10 $ 39,940.39 $ 39,150.34
    Total interest Paid $ 2,507.10 $ 6,940.39 $ 4,150.34
    Microsoft Excel 16.0 Answer Report
    Worksheet: [e06_script_data.xlsx]Car Loan
    Report Created: 7/22/2019 12:18:31 PM
    Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
    Solver Engine
    Engine: GRG Nonlinear
    Solution Time: 0.579 Seconds.
    Iterations: 1 Subproblems: 2
    Solver Options
    Max Time Unlimited, Iterations Unlimited, Precision 0.000001
    Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Central
    Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

    Objective Cell (Value Of)


    Cell Name Original Value Final Value
    $B$12 Monthly Payment $689.79 $700.00

    Variable Cells
    Cell Name Original Value Final Value Integer
    $B$2 Cost of Car $ 45,000.00 $ 45,000.00 Contin
    $B$3 Down Payment $ 8,000.00 $ 8,000.00 Contin
    $B$4 APR 4.50% 5.10% Contin
    $B$5 No. Years for Loan 5 5 Integer

    Constraints
    Cell Name Cell Value Formula Status Slack
    $B$12 Monthly Payment $700.00 $B$12=700 Binding 0
    $B$2 Cost of Car $ 45,000.00 $B$2<=50000 Not Binding 5000
    $B$2 Cost of Car $ 45,000.00 $B$2>=40000 Not Binding $ 5,000.00
    $B$3 Down Payment $ 8,000.00 $B$3<=8000 Binding 0
    $B$3 Down Payment $ 8,000.00 $B$3>=4000 Not Binding $ 4,000.00
    $B$4 APR 5.10% $B$4<=0.065 Not Binding 0.0139599733
    $B$4 APR 5.10% $B$4>=0.045 Not Binding 0.60%
    $B$5 No. Years for Loan 5 $B$5<=6 Not Binding 1
    $B$5 No. Years for Loan 5 $B$5>=4 Binding -
    $B$5=Integer
    Input Area Two-Variable Data Table: APR and Cost of Car
    Cost of Car $ 45,000.00
    Down Payment $ 8,000.00 APR $ 45,000.00 $ 50,000.00 $ 55,000.00
    APR 5.10% 4.50% $ 689.79 $ 783.01 $ 876.22
    No. Years for Loan 5 4.75% $ 694.01 $ 787.79 $ 881.57
    Payments Per Year 12 5.00% $ 698.24 $ 792.59 $ 886.95
    5.25% $ 702.48 $ 797.41 $ 892.34
    Output Area 5.50% $ 706.74 $ 802.25 $ 897.75
    Amount of Loan $ 37,000.00 5.75% $ 711.02 $ 807.10 $ 903.19
    Periodic Rate 0.43% 6.00% $ 715.31 $ 811.98 $ 908.64
    No. Payment Periods 60 6.25% $ 719.62 $ 816.87 $ 914.12
    Monthly Payment $700.00 6.50% $ 723.95 $ 821.78 $ 919.61
    Total to Repay Loan $ 42,000.00 6.75% $ 728.29 $ 826.71 $ 925.12
    Total Interest Paid $ 5,000.00 7.00% $ 732.64 $ 831.65 $ 930.66
    7.25% $ 737.02 $ 836.61 $ 936.21
    7.50% $ 741.40 $ 841.59 $ 941.78
    7.75% $ 745.81 $ 846.59 $ 947.38
    8.00% $ 750.23 $ 851.61 $ 952.99
    8.25% $ 754.66 $ 856.64 $ 958.62
    8.50% $ 759.11 $ 861.69 $ 964.28
    Range Names Location
    Amount_of_Loan ='Car Loan'!$B$9
    No._Payment_Periods ='Car Loan'!$B$11
    Periodic_Rate ='Car Loan'!$B$10

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