CarLoanCaseStudy (1) (1)
xlsx
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School
Brigham Young University, Idaho *
*We aren’t endorsed by this school
Course
108X
Subject
Mathematics
Date
Apr 3, 2024
Type
xlsx
Pages
29
Uploaded by BrigadierHeat19682
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.
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...
I would rather take out the loan so that I am able to have the car that I want and not have towait. Also if wait and the car your using now has problems it many end up costing more tha
you would like to spend, thus having to wait even longer.
My grandma and I talking about how a loan would suit both our needs more because we are
impatient and dont like to wait. We also understand how crutial it is too save even when taki
out a loan.
I have learned that is important to save wether not you are going to have a loan. You should always try to save in every aspect of your life because you dont know what life can throw at you.
I might apply these lessons I learned when buying a new car, a house, or even teaching my future children how to save and what to do when they buy their first car.
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Option)
#3
Loan Side
Vehicle Sale Price
Sales Tax
Down Payment
Loan Amount
#5A
APR
Loan Term (months)
You Paid
$ 18,264.90 Monthly Payment
Car Cost
$ 16,851.88 Total Payments
Wasted Money
$ 1,413.02 Total Interest
Loan Amortization Schedule
Payment to Bank = $279.42 Month
Beginning Balance
To Interest
To Principal
1
$ 15,351.88 $ 45.03 $234.38 2
$ 15,117.50 $ 44.34 $235.07 3
$ 14,882.43 $ 43.66 $235.76 4
$ 14,646.67 $ 42.96 $236.45 5
$ 14,410.22 $ 42.27 $237.15 Hint
6
$ 14,173.07 $ 41.57 $237.84 7
$ 13,935.23 $ 40.88 $238.54 8
$ 13,696.69 $ 40.18 $239.24 9
$ 13,457.45 $ 39.48 $239.94 10
$ 13,217.51 $ 38.77 $240.64 11
$ 12,976.87 $ 38.07 $241.35 12
$ 12,735.52 $ 37.36 $242.06 13
$ 12,493.46 $ 36.65 $242.77 14
$ 12,250.70 $ 35.94 $243.48 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
$ 12,007.22 $ 35.22 $244.19 16
$ 11,763.02 $ 34.50 $244.91 17
$ 11,518.11 $ 33.79 $245.63 18
$ 11,272.48 $ 33.07 $246.35 19
$ 11,026.13 $ 32.34 $247.07 20
$ 10,779.06 $ 31.62 $247.80 21
$ 10,531.27 $ 30.89 $248.52 22
$ 10,282.74 $ 30.16 $249.25 23
$ 10,033.49 $ 29.43 $249.98 24
$ 9,783.51 $ 28.70 $250.72 25
$ 9,532.79 $ 27.96 $251.45 26
$ 9,281.34 $ 27.23 $252.19 27
$ 9,029.15 $ 26.49 $252.93 28
$ 8,776.22 $ 25.74 $253.67 29
$ 8,522.55 $ 25.00 $254.42 30
$ 8,268.13 $ 24.25 $255.16 31
$ 8,012.97 $ 23.50 $255.91 32
$ 7,757.06 $ 22.75 $256.66 33
$ 7,500.40 $ 22.00 $257.41 34
$ 7,242.99 $ 21.25 $258.17 35
$ 6,984.82 $ 20.49 $258.93 36
$ 6,725.89 $ 19.73 $259.69 37
$ 6,466.20 $ 18.97 $260.45 38
$ 6,205.76 $ 18.20 $261.21 39
$ 5,944.55 $ 17.44 $261.98 40
$ 5,682.57 $ 16.67 $262.75 41
$ 5,419.82 $ 15.90 $263.52 42
$ 5,156.30 $ 15.13 $264.29 43
$ 4,892.01 $ 14.35 $265.07 44
$ 4,626.95 $ 13.57 $265.84 45
$ 4,361.11 $ 12.79 $266.62 46
$ 4,094.48 $ 12.01 $267.40 47
$ 3,827.08 $ 11.23 $268.19 48
$ 3,558.89 $ 10.44 $268.98 49
$ 3,289.92 $ 9.65 $269.76 50
$ 3,020.15 $ 8.86 $270.56 51
$ 2,749.60 $ 8.07 $271.35 52
$ 2,478.25 $ 7.27 $272.15 53
$ 2,206.10 $ 6.47 $272.94 54
$ 1,933.16 $ 5.67 $273.74 55
$ 1,659.41 $ 4.87 $274.55 56
$ 1,384.86 $ 4.06 $275.35 57
$ 1,109.51 $ 3.25 $276.16 w) ng ngs ?
an ing
58
$ 833.35 $ 2.44 $276.97 59
$ 556.38 $ 1.63 $277.78 60
$ 278.60 $ 0.82 $278.60
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#1
Enter your Vehicle Information here.
Make:
Nissan
Model:
Juke
$ 15,898.00 Year:
2014
Mileage:
175,450
$ 953.88 $ 1,500.00 $ 15,351.88 3.52%
60
$279.42 $ 16,764.90 $ 1,413.02 Savings
Ending Balance
Month
$ 15,117.50 #2
1
$ 14,882.43 2
$ 14,646.67 Loan Details
3
$ 14,410.22 4
$ 14,173.07 Loan Term (years):
5
5
$ 13,935.23 Loan Interest Rate:
3.52%
6
$ 13,696.69 7
$ 13,457.45 8
$ 13,217.51 Savings Account Details
9
$ 12,976.87 10
$ 12,735.52 Savings Interest Rate:
1.20%
11
$ 12,493.46 12
$ 12,250.70 13
$ 12,007.22 Typical Loan Rates and Terms
14
ou don't have a vehicle in mind already, u can use one of these links to find one:
over the triangles for help.
$ 11,763.02 New Car
Used Car
15
$ 11,518.11 3-Year Loan
3.15%
3-Year Loan
2.89%
16
$ 11,272.48 4-Year Loan
3.49%
4-Year Loan
3.05%
17
$ 11,026.13 5-Year Loan
3.84%
5-Year Loan
3.52%
18
$ 10,779.06 6-Year Loan
4.28%
6-Year Loan
3.68%
19
$ 10,531.27 20
$ 10,282.74 21
$ 10,033.49 Typical Checking and Savings Account Rates
22
$ 9,783.51 Checking 0.1%
Savings 1.2%
23
$ 9,532.79 24
$ 9,281.34 25
$ 9,029.15 26
$ 8,776.22 27
$ 8,522.55 28
$ 8,268.13 29
$ 8,012.97 30
$ 7,757.06 31
$ 7,500.40 32
$ 7,242.99 33
$ 6,984.82 34
$ 6,725.89 35
$ 6,466.20 36
$ 6,205.76 37
$ 5,944.55 38
$ 5,682.57 39
$ 5,419.82 40
$ 5,156.30 41
$ 4,892.01 42
$ 4,626.95 43
$ 4,361.11 44
$ 4,094.48 45
$ 3,827.08 46
$ 3,558.89 47
$ 3,289.92 48
$ 3,020.15 49
$ 2,749.60 50
$ 2,478.25 51
$ 2,206.10 52
$ 1,933.16 53
$ 1,659.41 54
$ 1,384.86 55
$ 1,109.51 56
$ 833.35 57
$ 556.38 58
$ 278.60 59
$ (0.00)
60
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#4
Savings Side
$ 15,898.00 Vehicle Sale Price
$ 953.88 Sales Tax
$ 16,851.88 Purchase Amount
$ 1,500.00 Previous Saved
1.20%
APR
60
$271.16 Monthly Payment
$ 17,769.80 You Paid
$ 16,269.80 Total Payments
$ 16,851.88 Car Cost
$ 582.08 Total Interest
$ (917.92)
Earned Money
s Amortization Schedule
Payment to Savings= $271.16 Beginning Balance
Interest Earned
Payment
Ending Balance
$ 1,500.00 $ 1.50 $271.16 $ 1,772.66 $ 1,772.66 $ 1.77 $271.16 $ 2,045.60 $ 2,045.60 $ 2.05 $271.16 $ 2,318.81 $ 2,318.81 $ 2.32 $271.16 $ 2,592.29 $ 2,592.29 $ 2.59 $271.16 $ 2,866.05 $ 2,866.05 $ 2.87 $271.16 $ 3,140.08 $ 3,140.08 $ 3.14 $271.16 $ 3,414.38 $ 3,414.38 $ 3.41 $271.16 $ 3,688.96 $ 3,688.96 $ 3.69 $271.16 $ 3,963.81 $ 3,963.81 $ 3.96 $271.16 $ 4,238.94 $ 4,238.94 $ 4.24 $271.16 $ 4,514.34 $ 4,514.34 $ 4.51 $271.16 $ 4,790.02 $ 4,790.02 $ 4.79 $271.16 $ 5,065.97 $ 5,065.97 $ 5.07 $271.16 $ 5,342.20 On this side you will save first, then buy. Is the wait worth it? You decide.
Savings Term (months)
Hover the mouse over the triangles for help.
$ 5,342.20 $ 5.34 $271.16 $ 5,618.70 $ 5,618.70 $ 5.62 $271.16 $ 5,895.49 $ 5,895.49 $ 5.90 $271.16 $ 6,172.55 $ 6,172.55 $ 6.17 $271.16 $ 6,449.88 $ 6,449.88 $ 6.45 $271.16 $ 6,727.49 $ 6,727.49 $ 6.73 $271.16 $ 7,005.39 $ 7,005.39 $ 7.01 $271.16 $ 7,283.55 $ 7,283.55 $ 7.28 $271.16 $ 7,562.00 $ 7,562.00 $ 7.56 $271.16 $ 7,840.73 $ 7,840.73 $ 7.84 $271.16 $ 8,119.73 $ 8,119.73 $ 8.12 $271.16 $ 8,399.01 $ 8,399.01 $ 8.40 $271.16 $ 8,678.58 $ 8,678.58 $ 8.68 $271.16 $ 8,958.42 $ 8,958.42 $ 8.96 $271.16 $ 9,238.54 $ 9,238.54 $ 9.24 $271.16 $ 9,518.94 $ 9,518.94 $ 9.52 $271.16 $ 9,799.62 $ 9,799.62 $ 9.80 $271.16 $ 10,080.59 $ 10,080.59 $ 10.08 $271.16 $ 10,361.83 $ 10,361.83 $ 10.36 $271.16 $ 10,643.36 $ 10,643.36 $ 10.64 $271.16 $ 10,925.16 $ 10,925.16 $ 10.93 $271.16 $ 11,207.25 $ 11,207.25 $ 11.21 $271.16 $ 11,489.62 $ 11,489.62 $ 11.49 $271.16 $ 11,772.27 $ 11,772.27 $ 11.77 $271.16 $ 12,055.21 $ 12,055.21 $ 12.06 $271.16 $ 12,338.43 $ 12,338.43 $ 12.34 $271.16 $ 12,621.93 $ 12,621.93 $ 12.62 $271.16 $ 12,905.72 $ 12,905.72 $ 12.91 $271.16 $ 13,189.78 $ 13,189.78 $ 13.19 $271.16 $ 13,474.14 $ 13,474.14 $ 13.47 $271.16 $ 13,758.78 $ 13,758.78 $ 13.76 $271.16 $ 14,043.70 $ 14,043.70 $ 14.04 $271.16 $ 14,328.90 $ 14,328.90 $ 14.33 $271.16 $ 14,614.40 $ 14,614.40 $ 14.61 $271.16 $ 14,900.17 $ 14,900.17 $ 14.90 $271.16 $ 15,186.24 $ 15,186.24 $ 15.19 $271.16 $ 15,472.59 $ 15,472.59 $ 15.47 $271.16 $ 15,759.22 $ 15,759.22 $ 15.76 $271.16 $ 16,046.15 $ 16,046.15 $ 16.05 $271.16 $ 16,333.36 $ 16,333.36 $ 16.33 $271.16 $ 16,620.85 $ 16,620.85 $ 16.62 $271.16 $ 16,908.64 $ 16,908.64 $ 16.91 $271.16 $ 17,196.71 $ 17,196.71 $ 17.20 $271.16 $ 17,485.07
$ 17,485.07 $ 17.49 $271.16 $ 17,773.72 $ 17,773.72 $ 17.77 $271.16 $ 18,062.65 $ 18,062.65 $ 18.06 $271.16 $ 18,351.88
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#5B
Hint
Winter 2024
1
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MATH 108X - Savings & Loans Project (Vehicl
#1
#2
#3
Complete the "Loan Side" of this worksheet.
#4
Complete the "Savings Side" of this worksheet.
#6
Discuss this project with a friend or family member…
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).
Find
a bank on the internet that shows their interest rates for both auto loans and savings accounts. 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.
0
le Option)
Errors Remaining:
3
Number Correct:
506
Loan Side
Vehicle Sale Price
Sales Tax
Down Payment
Loan Amount
#5A
APR
Loan Term (months)
You Paid
Correct Payment
Car Cost
Correct Total Payments
Wasted Money
Correct Total Interest
Loan Amortization Schedule
Payment = $279.42 Month
Beginning Balance
To Interest
To Principal
1
Correct Correct Err:508
2
Correct ERROR ERROR
3
Correct Correct Correct
4
Correct Correct Correct
5
Correct Correct Correct
Hint
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#1
#3
Enter your Vehicle Information here.
Make:
Correct
Model:
Correct
Correct Year:
Correct
Mileage:
Correct
Correct Correct Correct Correct
Correct
Correct
Correct Correct Savings
Ending Balance
Month
Err:508
#2
1
Correct 2
Correct Loan Details
3
Correct 4
Correct Loan Term (years):
Correct
5
Correct
Loan Interest Rate:
Correct
6
Correct
7
Correct
8
Correct
Savings Account Details
9
Correct
10
Correct
Savings Interest Rate:
Correct
11
Correct
12
Correct
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Correct
14
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#4
Savings Side
Correct Vehicle Sale Price
Correct Sales Tax
Correct Purchase Amount
Correct Previous Saved
Correct
APR
#5B
Correct
ERROR
Payment
Correct You Paid
Correct Total Payments
Correct Car Cost
Correct Total Interest
Correct Earned Money
s Amortization Schedule
Beginning Balance
Interest Earned
Payment
Ending Balance
Correct Correct Correct
Correct Correct Correct Correct
Correct Correct Correct Correct
Correct Correct Correct Correct
Correct Correct Correct Correct
Correct Correct
Correct
Correct
Correct
Hint
Correct
Correct
Correct
Correct
Err:508
Correct
Correct
Correct
Correct
Err:508
Correct
Correct
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Correct
Err:508
Correct
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Err:508
Correct
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Err:508
Correct
Correct
Correct
Correct
Err:508
Correct
Correct
Correct
Correct
Err:508
Correct
Correct
Correct
Correct
Err:508
Savings Term (months)
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Correct
Correct
Correct
Correct
Err:508
Correct
Correct
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Correct
Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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Err:508
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