- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Introduction
- Understand How Consumer Loans Can Keep You from Achieving Your Goals
- Explain the Characteristics and Costs of Consumer Loans
- Explain the Characteristics and Costs of Mortgage Loans
- Understand How to Select the Least Expensive Sources for Consumer Loans and How to Reduce the Costs of Borrowing
- Summary
- Assignments
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Case Study #3 Answers
A. To solve for your monthly payments, set:
PV= -9,000, I = 12, N=36, and solve for PMT=?
Your payment is $298.93 per month
B. To get your total interest paid, multiply your payment * 36 months = $10,761.44 – 9,000 = ?
$1,761.44
C. To determine what percent of the car you paid in interest, divide interest by the car’s cost of $9,000
= $1,761.46 / 9,000 = 19.56%.
You paid nearly 1/5 the value of the car in interest. Why not save next time and buy a nicer car (or save some of that money)?
