truck price

Percent down
APR
pmt/yr
yr

$ 40,000.00
15%
1%
12
2

amount down
amount loan
monthly deposit

$ 6,000.00
$ 34,000.00
$ 247.61

saving schedule PMT#

$PMT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

$INT

$BAL

$ 247.61 $
$ 247.61
$ 247.61 $ 0.21 $ 495.43
$ 247.61 $ 0.41 $ 743.46
$ 247.61 $ 0.62 $ 991.69
$ 247.61 $ 0.83 $ 1,240.13
$ 247.61 $ 1.03 $ 1,488.77
$ 247.61 $ 1.24 $ 1,737.63
$ 247.61 $ 1.45 $ 1,986.69
$ 247.61 $ 1.66 $ 2,235.96
$ 247.61 $ 1.86 $ 2,485.43
$ 247.61 $ 2.07 $ 2,735.11
$ 247.61 $ 2.28 $ 2,985.01
$ 247.61 $ 2.49 $ 3,235.11
$ 247.61 $ 2.70 $ 3,485.41
$ 247.61 $ 2.90 $ 3,735.93
$ 247.61 $ 3.11 $ 3,986.66
$ 247.61 $ 3.32 $ 4,237.59
$ 247.61 $ 3.53 $ 4,488.74
$ 247.61 $ 3.74 $ 4,740.09
$ 247.61 $ 3.95 $ 4,991.65
$ 247.61 $ 4.16 $ 5,243.42
$ 247.61 $ 4.37 $ 5,495.41
$ 247.61 $ 4.58 $ 5,747.60
$ 247.61 $ 4.79 $ 6,000.00
$ 5,942.70 $ 57.30 $ 74,760.52
1. How much money is deposited?
There is a total of $5942.70 deposited.
2.What is the total amount of Interest Deposited?
The total amount of interest deposited is $57.30
3. What percent of the amount deposited is the interest earned?
The percent of the amount deposited is .9642 % of interest earned.
4. How does the percent in #3 above compare to the APR? Explain.
The APR is an annual percentage rate that represents an averaged interest over the full
loan payment. The interest earned on the amount deposited is the cost of the loan to the
borrower. The lender is making money on the loan because the interest on the amount
deposited is less than the APR.

house price
Percent down
APR
pmt/yr
yr

$ 250,000.00
20%
2%
12
3

amount down
amount loan
monthly deposit

$ 50,000.00
$ 200,000.00
$ 1,358.74

saving schedule

PMT#

$PMT

$INT

$BAL

1
12
24
36

$ 1,358.74 $
$ 1,358.74
$ 1,358.74 $ 18.80 $ 16,417.46
$ 1,358.74 $ 39.61 $ 33,082.87
$ 1,358.74 $ 60.73 $ 50,000.00
$ 48,914.68 $ 1,085.32
1. How much money is deposited?
$48,914.68 was deposited.
2. What is the total amount of interest earned?
The total amount of interest earned is $1,085.32.
3. What percent of the amount deposited is the interest earned?
The percent of interest earned is 2.2188%
4. How does the percent in #3 compare to the APR? Explain.
The APR is 2% and is the average interest percent over the life of the loan. The interest in #3 is
2.2188% which is the cost of the loan to the borrower. The percent of interest earned
shouldn't be higher than the APR, because then the lender would be loosing money.
5. How do the answers in #4 Part I-A and #4 in PartI-B compare? Explain
In part 1-A, the lender is making money, in Part 1-B, the lender is loosing money. Generally
there are other fees when it comes to lending money.

truck price
Percent down
APR
pmt/yr
yr

$ 40,000.00
15%
1%
12
2

amount down
amount loan
monthly deposit

$ 6,000.00
$ 34,000.00
$ 247.61

saving schedule

PMT#

loan amount
APR
pmt/yr
yr

Monthly Payment
$PMT

$INT

1 $ 247.61 $
12 $ 247.61 $
24 $ 247.61 $

$BAL
$ 247.61
2.28 $ 2,985.01
4.79 $ 6,000.00

$ 34,000.00
2%
12
5

$599.67

Payment Schedule PMT#

$PMT
1
12
24
36
48
60

$INT PD

$599.67 $
63.75
$599.67 $
52.59
$599.67 $
40.16
$599.67 $
27.44
$599.67 $
14.43
$599.67 $
1.12
$35,980.18 $ 1,980.18
1. What is the total amount of principle paid for the sixty payments?
The total amount of principal paid was $34,000
2. What is the total amount of interest paid for the sixty payments?
The total amount of interest paid was $1,980.18
3. What is the total amount paid for the sixty payments?
The total amount paid for the sixty payments was $35,980.18
4. The total interest is what percent of the amount of the loan?
The total intersest percent is 5.8241%

$PRINC PD $BAL
$ 34,000.00
$535.92 $ 33,464.08
$547.08 $ 27,502.23
$559.51 $ 20,856.74
$572.23 $ 14,060.17
$585.24 $ 7,109.10
$598.55 $
0.00
$34,000.00

Home loan
Percent down
APR
pmt/yr
yr

$ 250,000.00
20%
3.75%
12
30

amount down
amount loan
monthly deposit

$ 50,000.00
$ 200,000.00
$
75.31

saving schedule

PMT#

loan amount
APR
pmt/yr
yr

Monthly Payment
$PMT

$INT

$BAL

1 $ 75.31 $ $ 75.31
12 $ 75.31 $ 2.63 $ 919.39

$ 200,000.00
4%
12
30

$926.23

Payment Schedule PMT#

$PMT
1
12
60
120
240
360

$926.23
$926.23
$926.23
$926.23
$926.23
$926.23
$333,443.23

1. What is the total amount of principle paid for the 360 payments?
Th total amount of principle paid is $200,000.00
2. What is the total amount of interest paid for the 360 payments?
The total amount of interest paid is $133,443.23
3. What is the total amount paid for the 360 payments?
The total amount of paid is $333,443.23
4. The total interest is what percent of the amount of the loan?
The total interest percent is 66.722%
5. How does the total percent of interest paid for the truck loan compare to the total percent of interest paid for
the mortgage?
Th total percent of interest paid for the truck loan is.9642 %. The total interest paid for the mortgage is 66.722%.
The truck loan percent interest is a lot lower than the mortgage because the length of time for the truck loan is
shorter. You end up paying more interest for a longer time.

$INT PD

$PRINC PD

$
625.00
$301.23
$
614.48
$311.75
$
564.11
$362.12
$
489.56
$436.67
$
291.25
$634.98
$
2.89
$923.35
$ 133,443.23 $200,000.00

$BAL
$ 200,000.00
$ 199,698.77
$ 196,322.45
$ 180,154.63
$ 156,223.55
$ 92,566.43
$
(0.00)

Reflection.
This project has helped me understand that the future
value will be more than the present value, because you
have to pay interest on the principle amount. It is better to
pay off a loan as soon as possible so that you don't have to
spend as much money on interest. If the number of years
and number of payments were changed, the longer the
term and number of payments, the more interest the
borrower will end up paying. In learning about future values
and present values, it makes you realize that money
lenders expect to make money by earning interest, and the
borrowers pay more money the longer the term.