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    Questions of Part I - A 1 2 3 4

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    api-382153962
    This document shows an amortization schedule for a $250,000 truck loan with a 20% down payment and 1.5% APR over 3 years with monthly payments. It lists the down payment amount, loan amount, monthly payment, and balances and interest paid over the loan term. The total interest paid is $1,085.32.

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    © All Rights Reserved
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    Questions of Part I - A 1 2 3 4

    Uploaded by

    api-382153962
    30 views11 pages
    This document shows an amortization schedule for a $250,000 truck loan with a 20% down payment and 1.5% APR over 3 years with monthly payments. It lists the down payment amount, loan amount, monthly payment, and balances and interest paid over the loan term. The total interest paid is $1,085.32.

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    This document shows an amortization schedule for a $250,000 truck loan with a 20% down payment and 1.5% APR over 3 years with monthly payments. It lists the down payment amount, loan amount, monthly payment, and balances and interest paid over the loan term. The total interest paid is $1,085.32.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    30 views11 pages

    Questions of Part I - A 1 2 3 4

    Uploaded by

    api-382153962
    This document shows an amortization schedule for a $250,000 truck loan with a 20% down payment and 1.5% APR over 3 years with monthly payments. It lists the down payment amount, loan amount, monthly payment, and balances and interest paid over the loan term. The total interest paid is $1,085.32.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 11

    Truck Price $250,000.

    00 Questions of Part I - A
    percent down 20.00%
    APR 1.50% 1
    pmt/yr 12
    yr 3 2

    amount down $50,000.00 3


    amount loan $200,000.00
    monthly deposit $1,358.74 4

    saving schedule PMT # $ PMT $ INT $ BAL

    1 $1,358.74 $0.00 $1,358.74


    12 $1,358.74 $18.80 $16,417.46
    24 $1,358.74 $39.61 $33,082.87
    36 $1,358.74 $60.73 $50,000.00

    Total Sum $48,914.68 $1,085.32 $918,259.65


    estions of Part I - A Questions of Part I - B

    $5,942.70 1

    $57.30 2

    0.9642% 3

    The number provided is very close to the APR number of 1%. 4

    5
    uestions of Part I - B

    48,914.68

    1,085.32

    2.2188%

    This time the number is slightly larger than the persentage provided by the APR, assuming
    it's because of the longer period of time.
    The answers diffensiage in that the APR descreased over time in Part I A while it slowly increased in Part I B
    slowly increased in Part I B
    Truck Price $40,000.00 Loan Amount
    percent down 15.00% APR
    APR 1.00% pmt/Yr
    pmt/yr 12 yr
    yr 2

    amount down $6,000.00


    amount loan $34,000.00
    monthly deposit $247.61 Monthly Payment

    saving schedule PMT # $ PMT $ INT $ BAL Payment schedule

    1 $247.61 $0.00 $247.61


    12 $247.61 $2.28 $2,985.01
    24 $247.61 $4.79 $6,000.00
    36 $247.61 $7.33 $9,045.28
    $34,000.00 Questions Part II A
    2.25%
    12 1 34000.00
    5
    2 1,980.18

    3 35,980.18

    $599.67 4 5.820%

    PMT # $ PMT $ INT PD $ PRINC PD $ BAL


    $34,000.00
    1 $599.67 $63.75 $535.92 $33,464.08
    12 $599.67 $52.59 $547.08 $27,502.23
    24 $599.67 $40.16 $559.51 $20,856.74
    36 $599.67 $27.44 $572.23 $14,060.17
    48 $599.67 $14.43 $585.24 $7,109.10
    60 $599.67 $1.12 $598.55 $0.00
    Sum $35,980.18 $1,980.18 $34,000.00 $1,022,097.76
    House price $250,000.00 Loan Amount
    percent down 20.00% APR
    APR 3.75% pmt/Yr
    pmt/yr 12 yr
    yr 30

    amount down $50,000.00


    amount loan $200,000.00
    monthly deposit $75.31 Monthly Payment

    saving schedule PMT # $ PMT $ INT $ BAL Payment schedule

    1 $75.31 $0.00 $75.31


    12 $75.31 $2.63 $919.39
    $200,000.00 Part II B
    3.75%
    12 926.23
    30
    133,433.23

    56.685.35

    $926.23 66.72%

    PMT # $ PMT $ INT PD $ PRINC PD $ BAL


    $200,000.00
    1 $926.23 $625.00 $301.23 $199,698.77
    12 $926.23 $614.48 $311.75 $196,322.45
    60 $926.23 $564.11 $362.12 $180,154.63
    120 $926.23 $489.56 $436.67 $156,223.55
    240 $926.23 $291.25 $634.98 $92,566.43
    360 $926.23 $2.89 $923.35 $0.00
    sum $333,443.23 $133,443.23 $200,000.00
    5

    the intersest of Part A is obviously a lot


    higher than the one of part B, It's a
    drastic change but it's because a 5 year
    loan is a lot shorter than a 30 year one.
    Reflect: How has this project helped you learn and understand about future and present value? How do you think th
    results would change if the parameters “number of years” and “number of payments per year” at the beginning of th
    project were changed? How could you use this work to learn more about future value and present value? There ar
    numerous programs online that produce future value and present value schedules like these in the project.

    This project is very important to every adult, I realized while working on it is that is is a life
    skill that everyone should study and understand in case it's needed in the future when it
    comes to taking loans out and paying them back. It also provides a better understanding of
    the interest rate system. If the parameters were changed it would be drastically different
    from what I just worked on, the formula would change and id is working with either more
    payments and higher rates or the complete opposite. Interest rate is very important as you
    can see in this assignment, paying on time helps maintain it along with how much you end
    up taking out.
    resent value? How do you think the
    nts per year” at the beginning of the
    value and present value? There are
    dules like these in the project.

    g on it is that is is a life
    in the future when it
    etter understanding of
    be drastically different
    rking with either more
    s very important as you
    ith how much you end

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