Scribd
Upload
109 views

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

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.

Uploaded by

Somil Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
109 views

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

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.

Uploaded by

Somil Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 5

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

You might also like