Part

1-A

truck price
percent down
APR
pmt/yr
yr

$40,000.00
15.00%
1.00%
12
2

amount down
amount loan
monthly deposit

saving schedule

PMT #

$6,000.00
$34,000.00
$247.61

$ 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

$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61
$247.61

$BAL

$0.00
$0.21
$0.41
$0.62
$0.83
$1.03
$1.24
$1.45
$1.66
$1.86
$2.07
$2.28
$2.49
$2.70
$2.90
$3.11
$3.32
$3.53
$3.74
$3.95
$4.16
$4.37
$4.58
$4.79

$247.61
$495.43
$743.46
$991.69
$1,240.13
$1,488.77
$1,737.63
$1,986.69
$2,235.96
$2,485.43
$2,735.11
$2,985.01
$3,235.11
$3,485.41
$3,735.93
$3,986.66
$4,237.59
$4,488.74
$4,740.09
$4,991.65
$5,243.42
$5,495.41
$5,747.60
$6,000.00



Part 1-A
Questions:
1
2
3
4

The total amount deposited is $5,942.70.
The total amount of interest earned is $57.30.
0.9642%
It is slightly lower than the APR of 1.00%.

Part 1-B

Part 1-B
Questions:

1 $48,914.68
2 $1,085.32
3 2.2188%
4 The actual percentage of the deposit that was interest earned is much higher than the
5

APR.
The answer from 1-A question 4 is lower than its APR and the answer from 1-B question
4 is higher than its APR. This is most likely due to the amount of time allowing the
interest to compound.

Part 2-A

Part 2-A
Questions:
1
2
3
4

Part 2-B

$34,000.00
$1,980.18
$35,980.18
5.8241%


loan amount
APR
pmt/yr
yr




monthly
payment

payment
schedule

$200,000.00
3.75%
12
30

$926.23

PMT #

$ PMT

$ INT PMT

$ PRINC PD

1
12
60
120
240
360

$926.23
$926.23
$926.23
$926.23
$926.23
$926.23

$625.00
$614.48
$564.11
$489.56
$291.25
$2.89

$ BAL

$301.23
$311.75
$362.12
$436.67
$634.98
$923.35

Part 2-B
Questions:

$200,000.00
$133,443.23
$333,443.23
66.722%

1
2
3
4
5 The total percentage of interest paid for the mortgage is much higher than on the truck
loan because of the time of the loan.

Part 3

$200,000.00
$199,698.77
$196,322.45
$180,154.63
$156,223.55
$92,566.43
-$0.00

This project was really helpful because it put the equations we have been learning into
real world situations. It helped me understand the big differences between future and
present values and the equations used to find each.

The following is how the results would change if the parameters for number of years
and number of payments per year was changed at the beginning:

Increasing the number of years only would result in the largest increase in percentage
of total interest of the loan.

Increasing the number of payment per year would also result in an increase in
percentage of total interest of the loan, although smaller than just changing the number
of years.

Increasing both the years and payments per year would result in an increase in
percentage of total interest of the loan, although still smaller than just changing the
number years.