* Project Part II: Research Paper (100 points total)
* Submit a 2-3 page research paper that includes the following (Use these headings to arrange your work):
* Include Part I in this portion of the project and add the other headings listed below. Before submitting, please proofread (or use external sources to proofread) your report for grammatical errors, appropriate headings, readability, and the inclusion of the reference page at the end of the report.
Information and Discussion:
Provide the following information for both cars:
* Name of Dealership, Factory MSRP, Dealer Incentive, Down Payment, Trade-in Value,
* Annual Interest Rates for the loan periods of 60, 72 and 84 months.
* Use appropriate technology to organize this information. Using APA style, please reference where you obtained your information and include this in the reference page that must be included at the end of the report.
* Using a mathematical software compute the monthly payment, total cost of each car, and the total interest that will be paid on each car for the loan periods 60, 72 and 84 months. Use appropriate technology to organize this information. Note: Dealer incentive, Trade –in value and down payment should be subtracted from the MSRP before computing the monthly payment.
* In two or more paragraphs provide a justification for your decision on which car you chose and the loan period you prefer. Include your observation on depreciation from part 1 of this on-going project.
Now that you have made a decision on which car to buy and the period over which you intend to amortize the loan.
1.) Using an appropriate spreadsheet package provide an amortization schedule for the car loan you intend to buy. Describe the spreadsheet/software you used and the mathematical formula used in computing monthly payment . Create a table that includes Payment #, Monthly Payment, Interest, Unpaid Balance Reduction and Unpaid Balance.
2.) Using a mathematical software with a regression capability, find the regression equationI(x) for Interest payments as a function of payment number (x) from your amortization table.
3.) Using a mathematical software with a regression capability, find the regression equationU(x) for Unpaid Balance Reduction a function of payment number (x) from your amortization table. Round your figures to two decimal places.
4.) Create the graphs ofI(x) and U(x) on separate coordinate planes using appropriate technology. Your plots should be clear with appropriate axes, labels, scaling and titles.
5.) Compare both graphs (i.e. discuss some relationships between the two graphs).
6.) You would like to pay off the car faster. Give at least three options that may be available. Order these options in terms of practicality and explain how you decided upon such ordering. Be specific about how much the loan period is shortened.
7.) Technology Considerations: Discuss what technology you chose to use for your displays of quantitative data (scatter plots
and graphs) and why. Discuss what technology you chose to create your scatterplots, graphs, linear regression equations and to generate your amortization table. Also provide reasons why you chose a particular technology instrument. For full credit be sure to discuss what technology options you considered, the pros and cons of each, and what considerations or concerns led you to make the choice you made.