# Car Payment Project

### Avery Lowrance

## 2015 Mercedes-Benz GLK250 BlueTEC SUV

Amount needed for loan after 20% down payment: $40,280

## Structure 1 part A You pay off the car throughout 4 years with a 6% interest rate. You divide the interest by 12 and then make it a decimal. You end up with .005 = r. You multiply the 4 years by 12 to figure out how many months it will be. You end up getting 48 = n. After you put the numbers into the formula and then into the calculator and then you get $945.98 as your monthly payment | ## Structure 1 part b To get the the amount paid in total during the life of the loan you multiply the monthly payment ($945.98) by 48 because that's the number of payments. You end with a total amount paid of $45,406.89 | ## Structure 1 part c To get the amount of interest paid during the loan you take the total amount paid ($45,406.89) and subtract the loan amount. After you subtract you get $5,126.89 |

## Structure 1 part A

After you put the numbers into the formula and then into the calculator and then you get $945.98 as your monthly payment

## Structure 1 part b

You end with a total amount paid of $45,406.89

## Structure 2 part A You pay off the car throughout 5 years with a 5.5% interest rate. You divide the interest by 12 and then make it a decimal. You end up with .004583 = r. You multiply the 4 years by 12 to figure out how many months it will be. You end up getting 60 = n. After you put the numbers into the formula and then into the calculator and then you get $769.39 as your monthly payment | ## Structure 2 part B To get the the amount paid in total during the life of the loan you multiply the monthly payment ($769.39) by 60 because that's the number of payments. You end with a total amount paid of $46,163.24 | ## Structure 2 part C To get the amount of interest paid during the loan you take the total amount paid ($46,163.24) and subtract the loan amount. After you subtract you get $5,883.24 |

## Structure 2 part A

After you put the numbers into the formula and then into the calculator and then you get $769.39 as your monthly payment

## Structure 2 part B

You end with a total amount paid of $46,163.24

## Structure 3 part A You pay off the car throughout 6 years with a 5% interest rate. You divide the interest by 12 and then make it a decimal. You end up with .004167 = r. You multiply the 4 years by 12 to figure out how many months it will be. You end up getting 72 = n. After you put the numbers into the formula and then into the calculator and then you get $647.55 as your monthly payment | ## Structure 3 part B To get the the amount paid in total during the life of the loan you multiply the monthly payment ($647.55) by 72 because that's the number of payments. You end with a total amount paid of $46,623.93 | ## Structure 3 part C To get the amount of interest paid during the loan you take the total amount paid ($46,623.93) and subtract the loan amount. After you subtract you get $6,343.93 |

## Structure 3 part A

After you put the numbers into the formula and then into the calculator and then you get $647.55 as your monthly payment

## Structure 3 part B

You end with a total amount paid of $46,623.93

## Analysis Questions/Answers

2. In terms of amount paid in interest Structure #1 is the least expensive. The total interest after four years of payments was $5,126.89.

3. In terms of amount paid in total over the life of the loan, Structure #1 is the least expensive. The total came out to $45,406.89

4. Soundcloud is blocked on my laptop but, if I had to choose a structure to go with, I'd choose #2. Structure 1 is great if you have $945.98 dollars to spend every month but, I think that's pretty expensive. Structure 3 is the least costly per month but, the interest is high and it eventually comes out the most expensive plan. I think 5 years is a great time frame to pay off a car and the price for #2 is the most appealing to me.