Lesson Plan - Installment Credit

Handout: Installment purchase

Interest Formula

Interest = principal X time X of interest (in years)

Example 1: Arthur, wants to buy an entertainment center. Cash price is $ 2,850. In addition, $ 250 down payment, monthly payments can be purchased at $ 140 per 24. He was concerned that he would pay how much in installments if the purchased items?

Total monthly payment + deposit = Total Price

= $ 250 + (U.S. $ 24 140)

= $ 3,610

= Total interest payments - cash price

= $ 3,610 - $ 2,850

= $ 760

Example 2: Looking for an interest rate. Check out also loans for fixed incomes ?

Principal Installment Price = full - down payment

= $ 3,610 - $ 250

= $ 3,360

Time / interest = principal x rate

= $ 760 / $ 3,360 2

= 11.3 percent

Installment mathematical problem
  1. Claire wants to buy wide-screen TV is being sold with $ 2,000 in cash. She's down payment and $ 1,000, willing to pay $ 200 every six months. Full price and interest rate and installment What is?
  2. Lauren if he pay on time, he has his heart set on a new GPS will cost him $ 325 and $ 400 if you pay cash. If the $ 50 down payment, how much do you pay him for each of 12 monthly payments. Check out also loans in canton ga ? Interest rate at time of purchase and what is this?
  3. Jake is trying to buy a used car will cost him $ 10,000. See Also loan sent to checking account . And a $ 5,000 down payment he paid $ 225 do 24. Full price and interest rate and installment What is?
  4. Vanessa needs to replace the windows of her cell phone at home. See Also loans direct . They have been installed, she will cost to purchase new sewing machines are sold in $ 2,500 cash. She will be nine monthly payments of $ 1,000 down payment and then $ 95. Full price and interest rate and installment What is?
  5. Armando motorcycle, you need a new motor. If he pay on time, and he will pay $ 700 in cash, it will cost him $ 825. See Also loans in augusta ga . Deposit is $ 275 if the motor, or how much he would pay for each of 12 monthly payments. Check out also loans in canton ga ? Interest rate at time of purchase and what is this?
  6. Sharp would like to raise money for cruises to Alaska for $ 2,800. Offer is not for the money and pay down $ 150 24. Prices and interest rate and installment What is full?
  7. Anna moved to her own apartment, and I want to buy a home entertainment center. She cost $ 1,495 in cash and if you pay the HIC if $ 1,350 is paid in installments. Check out also loans for prepaid banking . If the deposit is $ 450, for months, if it is annual or she takes time to pay the installment of 9%?
Lecture Notes: Buy a dream car that Are you in front of the shop
  • Research vehicle and options
  • Insurance, maintenance, and please see the price of gas
  • You can decide to spend much
  • What (if any), consider how your old car
Before You Buy
  • Take it for a test drive
  • Please refer to multiple dealers.
  • Compare financing options
  • To establish the cost before trade negotiations
  • Try selling your old car yourself
  • Please review the extended service contract
  • If you buy a used car with the car inspected by a mechanic you can trust
Funding

Accepted based on credit record

I = PRT

Note:

  • When calculating interest is the time in years
  • When determining the monthly payment, divide by the number of months
Overhead of the car loan

Funds to car

Three years

4 years

Five years

Loan amount

Interest Rates

9 percent

9 percent

9 percent

Interest

The total cost

Number of months

Monthly Payment

Allocation of car loan

The length of the loan

Three years

4 years

Five years

Advertising price of the vehicle

Interest Rates

9 percent

9 percent

9 percent

The amount of interest

The total cost

Monthly Payment

The length of the loan

Three years

4 years

Five years

Advertising price of the vehicle

Interest Rates

9 percent

9 percent

9 percent

The amount of interest

The total cost

Monthly Payment

The length of the loan

Three years

4 years

Five years

Advertising price of the vehicle

Interest Rates

9 percent

9 percent

9 percent

The amount of interest

The total cost

Monthly Payment

The following ... (1) Install the slip you drew. (2) Replace the three ads from your car. (3) funding vehicle and what to write and why you choose that option.

Using the example given in order to calculate the required down payment to purchase the following vehicles.

15 percent pay 20 percent down payment car prices

1. $ 13,000 of the car

2. SUV 23000

3. Truck $ 18,500

Calculate the following:

4. Vehicle costs: $ 14,000 Total interest:

APR: 9 percent of the total loan amount:

Loan periods: five years of monthly payments:

Deposit: 10%

5. Vehicle expenses: $ 5,000 Total Interest:

APR: 4.5% of the total loan amount:

Loan periods: three years of monthly payments:

Deposit: 25%

6. Vehicle costs: $ 12,000 Total interest:

APR: 5 percent of the total loan amount:

Loan periods: four years of monthly payments:

Deposit: $ 2,000

7. Vehicle expenses: $ 7,000 Total Interest:

APR: 7 percent of the total loan amount:

Loan periods: five years of monthly payments:

Deposit: $ 3,000

8. Vehicle costs: $ 16,000 Total interest:

APR: 11 percent of the total loan amount:

Loan periods: three years of monthly payments:

Deposit: $ 2,000

09. Vehicle costs: $ 16,000 Total interest:

APR: 11 percent of the total loan amount:

Loan periods: three years of monthly payments:

Deposit: $ 4,000

10. You, if you double the deposit paid and what happens to the total cost of the vehicle? What are two ways you can lower your monthly payments. Check out also loans herndon va ?

Lecture notes: buy that dream house Qualifying for a mortgage

Mortgage Acceptance is based on your credit record.

Payment amounts, and lower interest rates, based on income.


Types of mortgage
Fixed-rate home loan
  • Conventional 15,20,25,30 years - the same payment
  • FHA / VA - available on special populations
  • "Balloon" - from 30 to 10 years fixed and the balance is due. Check out also loan shops in portsmouth .

Adjustable-rate mortgage
  • Conventional ARM - depends on interest payments
  • Graduation - Payments - year fixed-time - Pay less with time, begins to rise
  • Growing - share - Increased pay is mainly applied
Other funding

/ Second-lien home equity loan - borrowing against the equity in your home

The reverse mortgages - you pay the bank by buying your own home

Refinance - the old "expensive" new mortgage to repay the "cheap" housing loans taken out

Overhead of house loan

Examples of mortgage

Three decades

Three decades

Three decades

Three decades

House prices

Interest Rates

6 percent

9 percent

12 percent

15 percent

Pay-per-thousand dollars

Total Payment

Total cost of the house

Should I do this every month to afford a house how much? (30%)

Funding allocation of House

Period

Three decades

Three decades

Three decades

Three decades

House prices

Interest Rates

6 percent

9 percent

12 percent

15 percent

Pay-per-thousand dollars (chart)

Total monthly payment

Total cost of the house

Period

Three decades

Three decades

Three decades

Three decades

House prices

Interest Rates

6 percent

9 percent

12 percent

15 percent

Pay-per-thousand dollars (chart)

Total monthly payment

Total cost of the house

Period

Three decades

Three decades

Three decades

Three decades

House prices

Interest Rates

6 percent

9 percent

12 percent

15 percent

Pay-per-thousand dollars (chart)

Total monthly payment

Total cost of the house

The following ... (1) Install the slip you drew. (2) Attach your three houses were discovered. (3) If you choose to write it because every house.

Calculate the following.

  1. $ 100,000 house is 8% (A) 15-year mortgage. (B) who you really are paying how much?
  1. $ 200,000 house at 6.5% (a) 30-year mortgage. (B) who you really are paying how much?
  1. $ 150,000 house at 9% (a) 25-year mortgage. (B) who you really are paying how much?

Please consider a $ 125,000 loan at 7% interest today. 15,20,25 The total cost of the monthly payment, and to calculate the 30-year loan.

The difference between 15 and 30 year loans What is?
Duraton Monthly Payment The total cost
15 years
Two decades
25 years
Three decades

Please use the same information as above and fill in the following table. The only exception is the interest rate. It is currently 8%.
Duraton
Monthly Payment
The total cost
15 years


Two decades


25 years

Three decades



How much one percentage point, or affect the total amount payable by the 25-year mortgage?
Pie of money in my future 55 years of age rethink

Four legs, when you are 55 years old, you have to invest, save, and donations, divide the pie in the size of each piece represents a portion of the money I spend. See Also loan installment credit .

(Note)

: After-tax the whole pie represents the total of your income year. Save for SV; IV for investment, for the SP and label the pieces stay, please donate to.

Reflex

: Complete this part of the assignment in another part of the paper is passed 40.64


Wants "and" demand from an economic viewpoint, "Now I and I think you're using my money, the investment in storage, donation, and use it in the future for spending Is there a possibility that I will / I notice that "When I think" I think ... "

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