BUYING ON CREDIT: INSTALLMENT PLAN BUY NOW, PAY LATER!

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Presentation transcript:

BUYING ON CREDIT: INSTALLMENT PLAN BUY NOW, PAY LATER!

PLAIN CITY HOUSE Price: 319,000 X 7% annual interest =$22,330 per year in interest. Length of loan=30 years (360 months) $22330 X 30 years=$669,900 in total interest. Total Price of House: $319,000+$669,900=$988,900 How much is your monthly payment?

HOUSE PAYMENT $988,900/360 months=$ per month (at 7% interest) What if your interest is 10%? 30 years of interest=$957,000 Total price of house=$1,276,000 Monthly payment=$3,544.44

LEATHER SECTIONAL Price: $2,000 X 21% annual interest=$___ per year in interest. Length of loan=3 years (36 months) Total interest= $_____. Total price of couch=$_____. How much is your monthly payment?

SAMSUNG 58” BIG SCREEN Price: $4000 X 12% annual interest on credit card=$____ per year in interest. Length of loan=2 years (24 months) Total interest= $_____. Total price of TV= $_____. How much is your monthly payment?

BIG DOG K-9 MOTORCYCLE Price: $25,000 X 9% annual interest=$____ interest per year. Length of loan=10 years (120 months) Total interest= $____. Total price of motorcycle= $____ How much is your monthly payment?