Calculus problem, calculus homework help

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Calculus problem, calculus homework help

Extra Credit Project for Mid-Term Exam Directions

(Note: There will not be extra credit for the Final Exam)

Amortization Schedules Assignment

Post the schedule, other information below, and your opinion in this Extra Credit Discussion area for up to 10 points extra credit that I will add to your Mid-Term Exam

Note:  An amortization schedule is used when you repay a loan (plus interest) by making equal payments. 

1) Go to an on-line car-pricing site; three possibilities are:
www.edmunds.com and www.kbb.com and www.autotrader.com

Choose two cars to find the price on; these may be used or new, a dream car, or a practical car. Use a web-site to develop a loan amortization schedule for each car. One possibility iswww.myamortizationchart.com   will organize your chart by either months or years. http://www.thecalculatorsite.com/finance/calculators/carloancalculator.php  will organize your chart by months. http://www.bloomberg.com/personal-finance/calculators/mortgage/  will organize your chart by years.  Use values close to 4 years and 5.5% interest to help you get started with using the amortization schedule.

2) Copy and paste (control c and control v works) ONE of the whole amortization schedules to post in the Extra Credit Discussion area (you will probably be able to see both a monthly amortization, and a yearly amortization; the yearly one will be shorter and easier to post). 
For BOTH cars, also post 1) the car information: make, model, and 2) this loan summary information: Interest rate, Number of payments, Monthly payment, Total principal paid, Total interest paid, and Total paid.

3) Write some type of short opinion decision based on your research about which car you might decide to purchase (or not) and why or why not.

4) Optional: Just for your personal interest, you may want to visit this site below to compare leasing vs. buying a car.

http://www.bloomberg.com/invest/calculators/leasebuy.html)

Good vehicle amortization EXAMPLE below:

 Yearly Amortization Schedule

Payments

Yearly Total

Principal Paid

Interest Paid

Balance

Year 1 (1-12)

$10,771.00

$8,869.65

$1,901.35

$29,725.35

Year 2 (13-24)

$10,771.00

$9,369.97

$1,401.03

$20,355.38

Year 3 (25-36)

$10,771.00

$9,898.51

$872.49

$10,456.86

Year 4 (37-48)

$10,771.00

$10,456.86

$314.14

$0.00

Totals

$43,084.02

$38,595.00

$4,489.02

 The amortization schedule is for the first vehicle I chose, which is a 2014 Honda Odyssey

Car 1  Car2

  • 2014 Honda Odyssey  2013 Honda Odyssey
  • New, $38,595 including tax, $0 Down  Used, $32,386 including tax, $0 down
  • 5.5% interest 5.5% interest
  • 48 monthly payments  48 monthly payments
  • $898 per month  $753 per month
  • Total principal paid $38595  Total principal paid $32,386
  • Total interest paid $4,489.02  Total interest paid $3,766.84
  • Total paid $43,084.02  Total paid $36,152.84

I decided to do the same vehicle, but a new model and a used, to see if buying a new was going to make much of a difference.  At first, just looking at the monthly payments, the difference wasn’t that much.  But after looking at the total paid, I would save about $7000 dollars purchasing the used vehicle.  If the used vehicle had low mileage I would definitely purchase that one.

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