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Explain how changes in loan terms and payments will affect the total amount you pay.

Objective: The assignment will help you to understand how changes in loan terms and payments will affect the total amount you pay. 1.Create an amortization table in Excel for a new car loan for 30,000 for six years at 5%. Determine the total amount of interest you will pay on this loan.2.Copy the table from Step 1, make an extra principal payment of $2,000 on the first day of year two. How does this change the total interest you will pay on this loan?3. Create an amortization table in Excel for a new car loan for 30,000 for three years at 5%.  Determine the total amount of interest you will pay on this loan.4.Copy the table from Step 3, change the interest rate to 2%. How does this change the total interest that you will pay on the loan?5.What is the total amount you will pay for the car (principal and interest)  in each of the steps 1,2,3 and 4. Assignment requirements:Any calculations must be turned in via ExcelFormat and presentation of information should be easy to follow and will be considered in final gradeUse class tools and concepts to support statements and assumptions.Assignment length should be adequate to cover the topic.   

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