Truck Price

percentage down
APR
PMT/YR
YR

$ 40,000.00
15.00%
1.00%
12
2

amount down
amount loan
monthly deposit

$ 6,000.00
$ 34,000.00
$
247.61

saving schedule

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

Asuncion S., Alissa D., Priya R.

$ PMT

$ 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

$ BAL
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

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

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

22 $
23 $
24 $

247.61 $
247.61 $
247.61 $

$ 5,942.70 $

4.37 $ 5,495.41
4.58 $ 5,747.60
4.79 $ 6,000.00
57.30

1. How much money is deposited? $5942.70

2. What is the total amount of interest is earned? $57.40
3. What percent of the amount deposited is the interest earned? 96.4%
4. How does the percent in #3 above compare to the APR? Explain. The APR is less than the amount in question 3.

Home price
percentage down
APR
PMT/YR
YR

$ 250,000.00
20.00%
1.50%
12
3

amount down
amount loan
monthly deposit

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

saving schedule

PMT
1
12
24
36

Asuncion S., Alissa D., Priya R.

$ PMT

$ INT

$ BAL

$
$
$
$

$
$
$
$

$
$
$
$

1,358.74
1,358.74
1,358.74
1,358.74

18.80
39.61
60.73

1,358.74
16,417.46
33,082.87
50,000.00

$ 32,609.78 $ 473.09

1. How much money is deposited? $32,609.78

2. What is the total amount of interest is earned? $473.09
3. What percent of the amount deposited is the interest earned? 145.0%
4. How does the percent in #3 above compare to the APR? the APR is much less than the amount of interest collected through the payments
5. How do the answers in #4 Part I-A and #4 in Part I-B compare? Explain. As the payment amount increses and the int rate increases so does the amount of interest earned.

mount of interest earned.

loan amount
APR
PMT/YR
YR

monthly payment
Payment schedule

$ 39,100.00
2.25%
12
5

$689.62
PMT#

$ PMT
1
12
24
36
48
60

$689.62
$689.62
$689.62
$689.62
$689.62
$689.62
$41,377.21

$ INT PD
$
73.31
$
60.48
$
46.18
$
31.55
$
16.59
$
1.29
$ 2,177.23

$ PRINC PD $ BAL
$ 39,100.00
$616.31 $ 38,483.69
$629.14 $ 31,627.56
$643.44 $ 23,985.25
$658.07 $ 16,169.20
$673.03 $ 8,175.46
$688.33 $
(0.00)
$39,100.00

1. What is the total amount of principle paid for the sixty payments? $39,100.00
2. What is the total amount of interest paid for the sixty payments? $2,177.23
3. What is the total amount paid for the sixty payments? $41,377.21
4. The total interest is what percent of the amount of the loan? 55%

loan amount
APR
PMT/YR
YR

monthly payment
Payment schedule

$ 39,100.00
3.75%
12
30

$181.08
PMT#

$ PMT
1
12
60
120
240
360

$ INT PD

$ PRINC PD $ BAL
$
$
$
$
$
$
$

39,100.00
39,041.11
38,381.04
35,220.23
30,541.70
18,096.74
0.00

$181.08 $
122.19
$58.89
$181.08 $
120.13
$60.95
$181.08 $
110.28
$70.79
$181.08 $
95.71
$85.37
$181.08 $
56.94
$124.14
$181.08 $
0.56
$180.51
$65,188.15 $ 26,088.15 $39,100.00
1. What is the total amount of principle paid for the 360 payments? $39100.00
2. What is the total amount of interest paid for the360 payments? $26,088.15
3. What is the total amount paid for the 360 payments? $65,188.15
4. The total interest is what percent of the amount of the loan? 66%
5. How does the total percent of interest paid for the truck loan compare to the total percent of interest paid for the mortgage? The total interest paid on the truck is less than t

on the truck is less than the amount paid in the mortgage because of the length of time of the loan.

Reflect: How has this project helped you learn and understand about
future and present value? How do you think the results would change
if the parameters number of years and number of payments per
year at the beginning of the project were changed? How could you
use this work to learn more about future value and present value?
There are numerous programs online that produce future value and
present value schedules like these in the project. Some such as
http://dknelsonmathteacher.weebly.com/1030-links.html also show
how paying extra principle to the regularly scheduled payments affects
the time and interest paid.

Reflection: