MATH

1090
PROJECT
Present and Future Values

Anthony Robertson

April 07, 2017




I-A
Truck Price $40,000.00

percent down 15.00%

APR 1.00%
pmt/yr 12
yr 2

amount down $6,000.00
amount loan $34,000.00
monthly
deposit $247.61

saving schedule PMT# $PMT $INT $BAL

1 $247.61 $0.00 $247.61

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 $247.61 $4.79 $6,000.00

$5,942.70 $57.30


1. 5,942.70
2. 57.30
3. 0.9642%
4. The APR and percent is almost the same. The interest proves to be consistent
throughout the length of the loan.


I-B

house price $250,000.00
percent down 20.00%
APR 1.50%

pmt/yr 12

yr 3


amount down $50,000.00
amount loan $200,000.00
monthly
deposit $1,358.74

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



$48,914.68 $1,085.32
Questions:
1. $48,914.68
2. $1,085.32
3. 2.2188%
4. The APR is almost 1% less that the percent of the interest earned due to the higher
amount owed on the loan.
5. The loan in I-B compared to I-A is much higher due to the larger amount loaned.

II-A
Loan amount $34,000.00
APR 2.25%
pmt/yr 12
yr 5

monthly payment $599.67

$Principle
payment scheudle PMT# PMT $ $INT Paid $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
49 $599.67 $13.33 $586.34 $6,522.76
60 $599.67 $1.12 $598.55 $0.00

$35,980.18 $1,980.18 $34,000.00
Questions:
1. $34,000
2. $1,980.18
3. $35,980.18
4. 5.8241%


II-B
Loan amount $200,000.00
APR 3.75%
pmt/yr 12
yr 30

monthly payment $926.23

payment scheudle PMT# PMT $ $INT $Principle Paid $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
$333,443.23 $133,443.23 $200,000.00

Questions:
1. $200,000
2. $133,443.23
3. $333,443.23
4. 66.722%
5. The home loan accumulated interest was much more than the car loan. Due to the
length of the loan, and how much more was borrowed, the interest was significantly
higher than the auto loan.

III Reflection

This project on present and future values painted an excellent picture of how loans,
interest, and payments all affect the life of a loan. The process of creating the excel table and
calculating the numbers assisted in my understanding of present and future values. If the
number of years increases in the loan, the more you will pay in interest. If payment increases,
you will pay less money in interest on the loan. If you pay more than the required payment, the
loan decrease at a faster pace and the you would not pay as much in interest.