CarLoanCaseStudy!.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 sure to write about all four points listed below.

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. Personally, I think saving is the best option for my circumstance. I am in no desperation to get a new car, and saving would benefit me the most, because of the earned money. While both options have a similar monthly payment, there total payments differ greatly. 2. Summarize your discussion with your friend or family member, includin their insights on your project. I discussed the project with a parent and they agreed that saving would b the best plan for me. They explained my current finances don't reflect the ability to pay a monthly car payment of that amount. Whereas if I wait an save slowly, I would have a better chance to keep up with payments, and enjoy the benefits of earned money. They attempted to play devils advoca with the taking out a loan side, but again, I have no urgency to get a different car. 3. Describe any lessons you have learned in understanding debt and savin plans. When the time comes to investigate my finances and make a plan for any kind of big purchase, I know how to calculate and decide the best plan for me. And when I have a family I can plan trips or effectively allocate money 4. How might you apply or teach others about these ideas in your future? Now that I have these skills I can assist the people in my life. For example my friend is thinking of going on a mission, but doesn't think he can do it with his savings. Or how my sister is considering going on campus but nee to calculate her finances and income to see if that is even a possibility. I am relieved to have learned a math skill that I can apply to the most relevant parts of my life.

Option) #3 Loan Side Vehicle Sale Price Sales Tax Down Payment Loan Amount #5A APR Loan Term (months) You Paid $ 10,882.27 Monthly Payment Car Cost $ 10,494.00 Total Payments Wasted Money $ 388.27 Total Interest Loan Amortization Schedule Payment to Bank = $249.51 Month Beginning Balance To Interest To Principal 1 $ 8,594.00 $ 20.70 $228.81 2 $ 8,365.19 $ 20.15 $229.36 3 $ 8,135.83 $ 19.59 $229.91 4 $ 7,905.91 $ 19.04 $230.47 5 $ 7,675.45 $ 18.49 $231.02 Hint 6 $ 7,444.42 $ 17.93 $231.58 7 $ 7,212.85 $ 17.37 $232.14 8 $ 6,980.71 $ 16.81 $232.70 9 $ 6,748.01 $ 16.25 $233.26 10 $ 6,514.76 $ 15.69 $233.82 11 $ 6,280.94 $ 15.13 $234.38 12 $ 6,046.56 $ 14.56 $234.95 13 $ 5,811.61 $ 14.00 $235.51 14 $ 5,576.10 $ 13.43 $236.08 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

15 $ 5,340.02 $ 12.86 $236.65 16 $ 5,103.38 $ 12.29 $237.22 17 $ 4,866.16 $ 11.72 $237.79 18 $ 4,628.37 $ 11.15 $238.36 19 $ 4,390.01 $ 10.57 $238.93 20 $ 4,151.08 $ 10.00 $239.51 21 $ 3,911.57 $ 9.42 $240.09 22 $ 3,671.48 $ 8.84 $240.67 23 $ 3,430.81 $ 8.26 $241.24 24 $ 3,189.57 $ 7.68 $241.83 25 $ 2,947.74 $ 7.10 $242.41 26 $ 2,705.33 $ 6.52 $242.99 27 $ 2,462.34 $ 5.93 $243.58 28 $ 2,218.76 $ 5.34 $244.16 29 $ 1,974.60 $ 4.76 $244.75 30 $ 1,729.85 $ 4.17 $245.34 31 $ 1,484.51 $ 3.58 $245.93 32 $ 1,238.57 $ 2.98 $246.52 33 $ 992.05 $ 2.39 $247.12 34 $ 744.93 $ 1.79 $247.71 35 $ 497.22 $ 1.20 $248.31 36 $ 248.91 $ 0.60 $248.91 w) o y ng be e nd ate ngs r y. ? eds m

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