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How to find the DOWN PAYMENT on a car to make a $1000 MONTHLY payment using EXCEL SOLVER?

"You will use Solver to determine what amount you will need for a down payment in order to obtain a monthly payment of $1000.00 for the number of months that you have decided to finance your car."

So here are the values I picked based on the table given:

Cost of car: $80,000

Down payment: ?

Interest Rate: 0.05/12 (monthly rate)

Number of payments: 60 (5 years)

Monthly payment: Goal = $1000.

How do I use solver to find this? I tried putting in some values and it gives me a $132K number that just does not make sense because you cannot put a down payment greater than the price of the car lol.

3 Answers

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  • 4 years ago

    In column A, random rows.

    4 - .05

    5 - 12

    8 - row 4/5

    10 - 60

    13- 1

    15 - PMT formula. choose the right cells.

    16- 15+8

    17 - what if scenario. set 16 to zero by changing....

    you can figure that part out.

  • 4 years ago

    If you cant find the down payment, you will not be able to pay $1000 a month

  • 4 years ago

    You are financing 51,954, your down needs to be 28,046

    If this is just an exercise in using Excel, sorry.

    http://www.calcxml.com/calculators/aut06?skn=#resu...

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