CarLoanCaseStudy (3).xlsx

MATH 108X - Savings & Loans Project (Vehicle #1 #2 #3 Complete the "Loan Side" of this worksheet. #4 Complete the "Savings Side" of this worksheet. #6 Project Goal : To see how interest works against you when you take out a Loan and how it works for you when you Save. Select a car to "consider for purchase." Enter the requested information about the vehicle (see Column M). Use your own bank, or a typical value of what banks usually offer for savings account interest rates and loan terms and rates. Enter the requested information about the bank rates (see Column M). #5A, B Complete the summary cells on both the "Loan Side" and the "Savings Side" of this worksheet. Discuss this project with a friend or family member. Show them the car you are considering for purchase. Explain how much you would end up paying if you (1) took out the loan and (2) if you saved for it first. Explain which option you think is better for you and why. Talk about the consequences of missing one month of payments under each option. Summarize your discussion with your friend or family member below. Be sure to write about ALL four points below. Summarize your discussion with your friend or family member here... be

Summarize your discussion with your friend or family member here... be sure to write about all four points listed below. 1. Explain which option (saving first or taking out the loan and buying now that you think is better for you and why. Type your answer here... 2. Summarize your discussion with your friend or family member, includin their insights on your project. Type your answer here... 3. Describe any lessons you have learned in understanding debt and savin plans. Type your answer here... 4. How might you apply or teach others about these ideas in your future? Type your answer here...

Option) #3 Loan Side Vehicle Sale Price Sales Tax Down Payment Loan Amount #5A APR Loan Term (months) You Paid $ 41,579.20 Monthly Payment Car Cost $ 38,690.00 Total Payments Wasted Money $ 2,889.20 Total Interest Loan Amortization Schedule Payment to Bank = $571.32 Month Beginning Balance To Interest To Principal 1 $ 31,390.00 $ 92.08 $479.24 2 $ 30,910.76 $ 90.67 $480.65 3 $ 30,430.11 $ 89.26 $482.06 4 $ 29,948.05 $ 87.85 $483.47 5 $ 29,464.58 $ 86.43 $484.89 Hint 6 $ 28,979.69 $ 85.01 $486.31 7 $ 28,493.37 $ 83.58 $487.74 8 $ 28,005.63 $ 82.15 $489.17 9 $ 27,516.46 $ 80.71 $490.61 10 $ 27,025.86 $ 79.28 $492.04 11 $ 26,533.82 $ 77.83 $493.49 12 $ 26,040.33 $ 76.38 $494.94 13 $ 25,545.39 $ 74.93 $496.39 If yo you On this side you will compute the cost of taking out a loan to buy the car of your choice. Hover the mouse o

14 $ 25,049.01 $ 73.48 $497.84 15 $ 24,551.16 $ 72.02 $499.30 16 $ 24,051.86 $ 70.55 $500.77 17 $ 23,551.09 $ 69.08 $502.24 18 $ 23,048.85 $ 67.61 $503.71 19 $ 22,545.14 $ 66.13 $505.19 20 $ 22,039.96 $ 64.65 $506.67 21 $ 21,533.29 $ 63.16 $508.16 22 $ 21,025.13 $ 61.67 $509.65 23 $ 20,515.49 $ 60.18 $511.14 24 $ 20,004.34 $ 58.68 $512.64 25 $ 19,491.70 $ 57.18 $514.14 26 $ 18,977.56 $ 55.67 $515.65 27 $ 18,461.91 $ 54.15 $517.17 28 $ 17,944.74 $ 52.64 $518.68 29 $ 17,426.06 $ 51.12 $520.20 30 $ 16,905.86 $ 49.59 $521.73 31 $ 16,384.13 $ 48.06 $523.26 32 $ 15,860.87 $ 46.53 $524.79 33 $ 15,336.07 $ 44.99 $526.33 34 $ 14,809.74 $ 43.44 $527.88 35 $ 14,281.86 $ 41.89 $529.43 36 $ 13,752.43 $ 40.34 $530.98 37 $ 13,221.45 $ 38.78 $532.54 38 $ 12,688.92 $ 37.22 $534.10 39 $ 12,154.82 $ 35.65 $535.67 40 $ 11,619.15 $ 34.08 $537.24 41 $ 11,081.91 $ 32.51 $538.81 42 $ 10,543.10 $ 30.93 $540.39 43 $ 10,002.71 $ 29.34 $541.98 44 $ 9,460.73 $ 27.75 $543.57 45 $ 8,917.16 $ 26.16 $545.16 46 $ 8,372.00 $ 24.56 $546.76 47 $ 7,825.23 $ 22.95 $548.37 48 $ 7,276.87 $ 21.35 $549.97 49 $ 6,726.89 $ 19.73 $551.59 50 $ 6,175.30 $ 18.11 $553.21 51 $ 5,622.10 $ 16.49 $554.83 52 $ 5,067.27 $ 14.86 $556.46 53 $ 4,510.81 $ 13.23 $558.09 54 $ 3,952.73 $ 11.59 $559.73 55 $ 3,393.00 $ 9.95 $561.37 w) ng ngs ?

56 $ 2,831.63 $ 8.31 $563.01 57 $ 2,268.62 $ 6.65 $564.67 58 $ 1,703.95 $ 5.00 $566.32 59 $ 1,137.63 $ 3.34 $567.98 60 $ 569.65 $ 1.67 $569.65

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