Part I-A
truck price
$40,000.00
percent down
15.00%
APR
1.00%
pmt/yr
12
yr
amount down
amount loan
$6,000.00
$34,000.00
monthly deposit
saving schedule
$247.61
PMT #
$ PMT
$ INT
$ BAL
$247.61
$0.00
$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
10
$247.61
$1.86
$2,485.43
11
$247.61
$2.07
$2,735.11
12
$247.61
$2.28
$2,985.01
13
$247.61
$2.49
$3,235.11
14
$247.61
$2.70
$3,485.41
15
$247.61
$2.90
$3,735.93
16
$247.61
$3.11
$3,986.66
17
$247.61
$3.32
$4,237.59
18
$247.61
$3.53
$4,488.74
19
$247.61
$3.74
$4,740.09
20
$247.61
$3.95
$4,991.65
21
$247.61
$4.16
$5,243.42
22
$247.61
$4.37
$5,495.41
23
$247.61
$4.58
$5,747.60
24
total
$247.61
$5,942.70
$4.79
$6,000.00
$57.30
house price
percent down
APR
pmt/yr
yr
$250,000.
00
20.00%
1.50%
12
amount down
$50,000.0
0
amount loan
$200,000.
00
monthly
deposit
$1,358.74
saving
schedule
PMT #
$ PMT
$1,358.74
$ INT
$ BAL
$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
Part II-A
loan amount
APR
pmt/yr
yr
$34,000.00
2.25%
12
monthly payment
payment schedule
$599.67
PMT #
$ PMT
$ INT PD
$ Princ Pd
$ BAL
$34,000.00
total
$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
1. The total amount of the principle paid for the sixty payments is $34,000.00.
2. The total amount of the interest paid for the sixty payments is $1,980.18.
3. The total amount paid for the sixty payments is $35,980.18.
4. The total interest is 5.8235% of the loan.
Part II-B
loan amount
APR
$200,000.
00
3.75%
pmt/yr
12
yr
30
monthly
payment
$926.23
payment
schedule
PMT #
$ PMT
$ INT PD
$ Princ Pd
$ BAL
$200,000.
00
total
$926.23
$625.00
$199,698.
$301.23
77
12
$926.23
$614.48
$311.75
$196,322.
45
24
$926.23
$602.59
$192,504.
$323.64
59
36
$926.23
$590.24
$335.99
$188,541.
07
48
$926.23
$577.42
$348.81
$184,426.
34
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
$92,566.4
3
360
$926.23
$2.89
$923.35
$0.00
1. The total amount of principle paid for the 360 payments is $200,000.00.
2. The total amount of interest paid for the 360 payments is $133,443.23.
3. The total amount paid for the 360 payments is $333,443.23.
4. The total interest is 66.7216% of the loan.
5. The total percent of interest for the truck loan (5.8235%) is much less compared to the
total percent of interest for the mortgage (66.7216%) because the APR (2.25%), loan
amount ($34,000), and number of payments (60) for the truck loan were less than the
APR (3.75%), loan amount ($200,000), and number of payments (360) for the
mortgage.
Part III
This project has helped me learn and understand about future and present
value by applying the concepts to real-life and by presenting the information and
solving the problems in a new way. When there are multiple instances that can be
linked to particular concept, I tend to remember the concept better and can better
relate it and apply it to other instances. The results would change for all parts I-II if
the parameters number of years and number of payments per year at the
beginning of the project were changed. Those parameters are significant to the
final results of the total of the payments made and the total amount of interest
earned or paid and any percentages calculated using those numbers. I can use this
work to learn more about future value and present value by applying the concepts
learned to other instances, which should be easier since I learned these concepts in
multiple and different ways. This would also be a great way to check my work when
solving a problem in regards to future and present value. These concepts will be
helpful for not only this math class, but in common, everyday real-life instances.