Truck Price

Percent Down
APR
pmt/yr
yr
amount down
amount loan
monthly
deposit
saving
schedule

$40,000
15.00%
1.00%
12
2
Niall Cummins

$6,000.0
0
$34,000.
00

Math 1090
Salt Lake Community
College

$247.61
PMT#

11/10/16
$ PMT

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

$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1
$247.6
1

$INT
$0.0
0
$0.2
1
$0.4
1
$0.6
2
$0.8
3
$1.0
3
$1.2
4
$1.4
5
$1.6
6
$1.8
6
$2.0
7
$2.2
8
$2.4
9
$2.7
0
$2.9
0
$3.1
1
$3.3
2
$3.5
3
$3.7
4
$3.9
5
$4.1
6
$4.3
7
$4.5
8

$BAL

$247.61
$495.43
$743.46
$991.69
$1,240.1
3
$1,488.7
7
$1,737.6
3
$1,986.6
9
$2,235.9
6
$2,485.4
3
$2,735.1
1
$2,985.0
1
$3,235.1
1
$3,485.4
1
$3,735.9
3
$3,986.6
6
$4,237.5
9
$4,488.7
4
$4,740.0
9
$4,991.6
5
$5,243.4
2
$5,495.4
1
$5,747.6
0

Future and Present Value

with Periodic Payments
PART I-A

1.
2.
3.
4.

$5942.70 is deposited.
$57.30 of interest was earned.
.9642% of the amount deposited was interest earned.
The percentage above is incredibly close to the APR, but is not quite there
because of the margin of error allowed for rounding. We have to round
because we cant break money down into anything smaller than a penny.

PART I-B
Home Price
Percent
Down
APR

$250,000
20.00%
1.50%

pmt/yr
yr

12
3

monthly deposit

$50,000.
00
$200,000
.00
$1,358.7
4

saving schedule

PMT#

amount down
amount loan

$ PMT

1
12
24
36
1.
2.
3.
4.

$1,358.
74
$1,358.
74
$1,358.
74
$1,358.
74

$INT

$0.00
$18.8
0
$39.6
1
$60.7
3

$BAL
$1,358.7
4
$16,417.
46
$33,082.
87
$50,000.
00

$1,358.74 was deposited every month for 3 years for a total of $48914.64.
$1085.36 of interest was earned.
The interest was about 2.218% of the amount deposited.
This interest rate is much higher than the APR because it has been
compounded.
5. In PART I-B the interest is higher than the APR because the interest is
compounded over time. The length of time was greater in part B, so the
interest totaled a greater amount.

PART II-A
Loan amount
APR
pmt/yr
yr

$34,0
00
2.25%
12
5

Monthly
Payment

$599.
67

Payment
Schedule

PMT #

1
12
24
36
48
60
1.
2.
3.
4.

$PMT
$599.
67
$599.
67
$599.
67
$599.
67
$599.
67
$599.
67

$INT
PD
$63.7
5
$52.5
9
$40.1
6
$27.4
4
$14.4
3
$1.12

$PRINC
PD

$BAL
$34,000

$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
$1980.18
$35980.18
The total interest is 5.5% of the loan if you go off the total in number 3,
or 5.8% if you go off of $34,000.

PART II-B
Mortgage
Amount
APR
pmt/yr
yr

$200,000
.00
3.75%
12
30

Monthly
Payment

$926.23

Payment
Schedule

PMT#

$ PMT

1
12
60
120
240
360
1.
2.
3.
4.

$926.
23
$926.
23
$926.
23
$926.
23
$926.
23
$926.
23

$INT
PD
$625.0
0
$614.4
8
$564.1
1
$489.5
6
$291.2
5
$2.89

$ PRINC
PD
$301.2
3
$311.7
5
$362.1
2
$436.6
7
$634.9
8
$923.3
5

$BAL
$200,000
.00
$199,698
.77
$196,322
.45
$180,154
.63
$156,223
.55
$92,566.
43
$0.00

$200,000
$133,443.23
$333,443.23
The total amount of interest is 66.72% of the original $200,000 that was
borrowed.

5. The total amount of interest for the mortgage is an order of magnitude higher
than the total amount of interest for the truck. This is because it was
compounded over 30 years.
PART III
I think that this project has helped me in a few ways. For one, it helped me
learn quite a few neat tricks in Excel that I did not know before. Thank you for that. I
also definitely understand future and present value quite a bit better now, and it is
easy to see all the practical uses for this type of math. I think that this project was
very enlightening, and Im glad I did it.
Changing the number of payments per year increases or decreases the
amount of each payment, depending on if youre adding or subtracting payments,
but it also affects the amount of interest. If you shorten the amount of years that it
takes you to pay off the loan, you end up paying less interest, but you also have to
pay larger payments.