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The problem presented revolves around calculating loan repayments and interest using a spreadsheet model. Let's break down the steps and answer each part:

### Part (a): Finding the Monthly Repayment
You are asked to set up a spreadsheet to determine the exact monthly repayment to ensure the loan is fully paid off in 36 months (3 years). The loan details given are:
- **Initial Loan Amount**: $20,000
- **Interest Rate**: 1% per month
- **Initial Guess for Monthly Repayment**: $250 (but this needs to be recalculated through trial and error).

#### Steps to follow in the spreadsheet:
1. **Column B**: Amount owed at the start of each month.
2. **Column C**: Interest = Column B × Interest Rate (1% = 0.01).
3. **Column D**: Repayment (which we need to adjust).
4. **Column E**: Balance owed = (Amount owed at the start) + Interest - Repayment.

The goal is to adjust the repayment until the balance owed reaches zero at the end of month 36.

You can set up a spreadsheet with the formulas:
- B8 = Initial Loan (20,000), B9 = E8, B10 = E9, etc.
- C8 = B8 * 0.01, C9 = B9 * 0.01, etc.
- D8 = Repayment (guess this and adjust as needed).
- E8 = B8 + C8 - D8, E9 = B9 + C9 - D9, etc.

Using **trial and error**, adjust the repayment amount so that the balance at the end of the 36th month is approximately zero.

### Part (b): The Final Repayment
The final repayment will be different from the rest because at the end of the loan, the remaining balance plus interest might not exactly match the fixed repayment. Therefore, you will need to make a smaller final payment to cover the remaining balance.

### Part (c): Total Interest Paid Over 3 Years
Once you have the correct monthly repayment, you can calculate the total interest paid over 36 months. This is done by summing all the values in **Column C** (the interest column).

### Part (d): Total Amount Brianna Paid for the Car
The total amount Brianna paid is the sum of all repayments (i.e., 36 monthly payments plus the final adjusted payment if necessary). This can be calculated by summing **Column D** for all 36 months.

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Would you like me to help with further details on how to set up the spreadsheet formulas, or provide specific values?

### 5 Related Questions:
1. How does the interest rate impact the monthly repayment amount?
2. Why does the repayment need to be adjusted for the last month?
3. How can we automate trial and error using Excel's Goal Seek feature?
4. What happens if the monthly repayment is set too low?
5. What effect would increasing the interest rate have on total interest paid?

### Tip:
Using Excel’s **Goal Seek** function can help automate finding the exact repayment amount for a zero balance at the end of the loan term.

Set up a spreadsheet in Excel and calculate the monthly repayment so that the loan is paid off after 36 months. Also answer related questions about final repayment, interest paid, and total amount paid for the car.

Learn how to calculate the monthly repayment of a $20,000 loan with a 1% interest rate using Excel. This problem walks through setting up spreadsheet formulas and calculating interest, final repayments, and total payments over a 3-year period.

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