Professional Documents
Culture Documents
Name: __________________
Section: _________________
Part 1 Its a New Car!
Car Make and
Model
e.x. Toyota
Corolla
Honda Odyssey
Toyota Sienna
Loan 1
Loan 2
Year
Trim Style
Extra Features
Price
2014
LE
no
$17,199
2014
2014
EX
LE
No
No
$29,311
$28,168
Length of
Loan
36 month
48 month
Rate
4.04
3.75
36 month loan
$865.90
48 month loan
$658.54
$1,861.37
$31,172.37
6.35%
$2,298.95
$31,609.95
7.84%
36 month loan
$832.13
48 month loan
$632.86
$1,788.79
$29,956.79
6.35%
$2,209.30
$30,377.30
7.84%
36 Month Loan
48 Month Loan
$5,772.66
$5,547.55
$4,390.27
$4,219.07
I would pick the Toyota Sienna. It has similar features to the Honda Odyssey and is cheaper,
which will allow me to save money.
Any explanation would be acceptable here, assuming it is supported as to why
Create a flashy advertisement as if you were the Auto Seller, promoting the car you picked and
the low, low, low monthly payment.
Interest
$88.03
$86.32
$84.61
$82.90
$81.18
$79.46
$77.73
Principle
$544.84
$546.54
$548.25
$549.96
$551.68
$553.40
$555.13
Balance
$28,168.00
$27,623.16
$27,076.63
$26,528.38
$25,978.42
$25,426.74
$24,873.34
$24,318.21
Percent
owed
100
98.06576
96.12548
94.17914
92.22672
90.26819
88.30354
86.33275
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
$75.99
$74.25
$72.51
$70.76
$69.00
$67.24
$65.47
$63.70
$61.92
$60.14
$58.35
$56.55
$54.75
$52.94
$51.13
$49.31
$47.49
$45.66
$43.82
$41.98
$40.14
$38.29
$36.43
$34.56
$32.69
$30.82
$28.94
$27.05
$25.16
$23.26
$21.35
$19.44
$17.52
$556.87
$558.61
$560.35
$562.10
$563.86
$565.62
$567.39
$569.16
$570.94
$572.73
$574.51
$576.31
$578.11
$579.92
$581.73
$583.55
$585.37
$587.20
$589.04
$590.88
$592.72
$594.58
$596.43
$598.30
$600.17
$602.04
$603.92
$605.81
$607.70
$609.60
$611.51
$613.42
$615.34
$23,761.34
$23,202.74
$22,642.39
$22,080.28
$21,516.42
$20,950.80
$20,383.41
$19,814.25
$19,243.31
$18,670.58
$18,096.07
$17,519.76
$16,941.65
$16,361.73
$15,780.00
$15,196.45
$14,611.08
$14,023.88
$13,434.84
$12,843.97
$12,251.24
$11,656.67
$11,060.24
$10,461.94
$9,861.77
$9,259.73
$8,655.80
$8,049.99
$7,442.29
$6,832.69
$6,221.18
$5,607.76
$4,992.42
84.35581
82.37268
80.38336
78.38783
76.38605
74.37802
72.36372
70.34312
68.31621
66.28296
64.24336
62.19738
60.14501
58.08623
56.02102
53.94935
51.8712
49.78656
47.69541
45.59772
43.49348
41.38266
39.26525
37.14122
35.01055
32.87322
30.72921
28.57851
26.42108
24.25691
22.08598
19.90826
17.72374
41
42
43
44
45
46
47
48
$15.60
$13.67
$11.74
$9.80
$7.85
$5.90
$3.94
$1.97
$617.26
$619.19
$621.12
$623.06
$625.01
$626.96
$628.92
$630.89
$4,375.16
$3,755.98
$3,134.85
$2,511.79
$1,886.78
$1,259.81
$630.89
$0.00
15.53239
13.33419
11.12913
8.917168
6.698299
4.472495
2.239736
1.33E-14
What do you notices about the amount of money applied towards the interest each
month? Towards the principle? Why do you think that is?
The amount of interest decreases each month and the amount of principle increases.
Banks want to get the most interest from you as soon as possible, in case you decide to
pay the loan off early, they have still made the most money
What is your loan balance at the end of one year? What percent of the loan do you still
owe at this time?
o Loan Balance - $$21,516.42
o Percentage Owed 76%
Two years? Three Years? Four Years (if applicable)?
Year
0
1
2
3
4
Loan Balance
(how much I
still owe)
28,168
21516.42
Percent Owed
7442.29
0
100%
76%
52%
26%
0%
Year
2014 (new car)
2013 (1 year old
car)
2012 (2 year old
car)
2011 (3 year old
car)
2010 (4 year old
car)
Mileage
25
15,000
Car Condition
Excellent
Very Good
Value of Car
24173
20927
30,000
Good
18554
45,000
Good
14644
60,000
Fair
11430
Year
0 / 2014
1 / 2013
2 / 2012
3 / 2011
4 / 2010
$14611.08
Create a scatter plot of this information. Make sure to appropriately label, title, and include a
legend.
Dollars
25000
20000
15000
10000
5000
0
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Years of Ownership
Trade-in Value of Car
Loan Amount
Monthly Payment
0% = $0
$25,000
694.25
Required Monthly
Income (if
following 15%
rule)
4628.33
5% = $1250
$23,750
659.54
4396.92
10% = $2500
$22,500
624.83
4165.5
15% = $3750
$21,250
590.11
3934.08
How much of a down payment would you need if your monthly income is
$4000?
.15*4000=$600
$3000?
.15*3000=$450
$2000?
.15*4000=$300
Estimate how much you would have in your savings account after 1 year and show your work. 2
years?
Example Rate: 1.05%
Monthly Payment for 3 year loan of 2014 Toyota Sienna $832.13
A = PMT * [(1+(APR/n)^nY 1]/(APR/n)
A = 832.13 * [(1+(.0105/12)^(12) 1]/(.0105/12)
After 1 year balance would be: 10033.76
After 2 years - 20173.37
Would this be something you would consider? What would be some benefits or detriments and
why?