Car Payment Project

By: Sam Chopko & Cameron Thrift

Price: \$26,520

Down Payment: \$5,304

Structure #1

t = 4 years

APR = 6%

.06/12 = .005

r = .005

n = 48

\$26,520 - \$5,304 = p

p = \$21,216

A. ) \$341.68

B. ) \$23,916.48

C. ) \$2,700.48

Structure #2

t = 5 years

APR = 5.5%

\$26,520 - \$5,304 = p

p = \$21,216

.055/12 = .004

r = .0045833333

n = 60

A. ) \$405.88

B. ) \$24352.8

C. ) \$3136.8

Structure #3

t = 6 years

APR = 5.0%

.05/12 = .004

r = .0041666667

n = 72

\$26,520 - \$5,304 = p

p = \$21,216

A. ) \$341.68

B. ) \$24,601.12

C. ) \$3,385.12

Analysis Questions:

1. If you compare all the monthly payments, structure number three had the overall least expensive monthly payment.
2. Out of all of the three car payment structures. Structure number two has the lowest overall amount paid in interest.
3. Structure number one has the lowest total over the life of the loan, compared to the rest of the payments
4. I would chose structure number three because in the long run it will be the cheapest. It is all so the longest to pay off but it will better in the long run.

Samuel Chopko