Personal Finance



Personal Finance Name: ___________________Date: _______ Period: _____

Car Loan Payment Calculator

Use the website for this assignment. To find the car payment calculator, click on Research (near the top of the screen) and use the section titled, “How Much Can I Spend”. Use the following scenarios to find out how the terms used to purchase a car will affect the total interest, the monthly payment and the total cost of the car.

Scenario #1

Cost of the vehicle $10,000

Down Payment $2,000

Loan amount _________ (subtract down payment from cost of the car)

Interest rate 8 %

Loan Term 24 months

Total Interest _________

Monthly Payment _________

Total cost of the car _________ (down payment +interest + loan amount)

Scenario #2

Cost of the vehicle $10,000

Down Payment $2,000

Loan amount _________ (subtract down payment from cost of the car)

Interest rate 8 %

Loan Term 48 months

Total Interest _________

Monthly Payment _________

Total cost of the car _________ (down payment +interest + loan amount)

Scenario #3

Cost of the vehicle $10,000

Down Payment $2,000

Loan amount _________ (subtract down payment from cost of the car)

Interest rate 8 %

Loan Term 72 months

Total Interest _________

Monthly Payment _________

Total cost of the car _________ (down payment +interest + loan amount)

Scenario #4

Cost of the vehicle $10,000

Down Payment $2,000

Loan amount _________ (subtract down payment from cost of the car)

Interest rate 6%

Loan Term 48 months

Total Interest _________

Monthly Payment _________

Total cost of the car _________ (down payment +interest + loan amount)

Scenario #5 Double the Down Payment

Cost of the vehicle $10,000

Down Payment $4,000 (double the down payment)

Loan amount _________ (subtract down payment from cost of the car)

Interest rate 6%

Loan Term 48 months

Total Interest _________

Monthly Payment _________

Total cost of the car _________ (down payment +interest + loan amount)

Scenario #6 You choose the terms

Cost of the vehicle $10,000

Down Payment _________

Loan amount _________ (subtract down payment from cost of the car)

Interest rate _____%

Loan Term _____months

Total Interest _________

Monthly Payment _________

Total cost of the car _________ (down payment +interest + loan amount)

Reflection Questions

1. In which scenario was the interest amount the highest?

2. Which scenario had the lowest car payment?

3. How does the length of the loan affect the monthly car payment amount?

4. How does the length of the loan affect the total cost of the car?

5. Why do you think car salesmen are so willing to help you make lower monthly payments?

6. What are the 3 things that can affect the total cost of a car besides the initial price?

a.

b.

c.

7. Explain how using a site like this could be helpful before you go car shopping:

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