How to finance a car So you need a loan…. What is a down payment? This is the amount you already have saved up in cash to pay towards your car.

Slides:

Advertisements

Similar presentations

Buying and Maintaining a Car Practical vs. Fantasy.

Advertisements

Warm Up 1/16/14 Which auto would be your first purchase? (include year, make, and model) How much do you think this auto will cost? If you finance it,

1. In cell E5, write an Excel formula which can be copied down the column into cells E6:E8 to show the actual loan amount rounded to nearest dollar. The.

Simple Interest. is money added onto the original amount saved (earned) or borrowed (charged). Simple Interest.

Simple Interest I =Prt I = Interest P = Principle r = rate t = time

INTEREST What does that mean?. What interest would anyone have in lending you money?

Simple Interest Formula I = PRT.

Debt Management Lecture No.10 Professor C. S. Park Fundamentals of Engineering Economics Copyright © 2005.

L10: Debt Management ECON 320 Engineering Economics Mahmut Ali GOKCE Industrial Systems Engineering Computer Sciences.

Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.

Percents, Discounts and Interest PERCENTS: A percent is a representation of a number, compared to a total value of 100. A percent which is less than a.

Thinking Mathematically

LSP 120 Financial Matters. Loans  When you take out a loan (borrow money), you agree to repay the loan over a given period and often at a fixed interest.

Present Value and Loans Mat 112. Now, let’s withdraw.

Contemporary Engineering Economics, 4 th edition, © 2007 Debt Management Lecture No.13 Chapter 4 Contemporary Engineering Economics Copyright © 2006.

Minds On: Future Value Tom and Beth are twins. They save for retirement as follows: – Starting at age 25, Tom deposits $1000 at the end of each year for.

Management 3 Quantitative Methods The Time Value of Money A Practical Conclusion.

CALCULATING THE COST OF TOTAL CREDIT Personal Finance.

Financial Maths Chapter A and B – purchasing goods (simple interest) and buying on terms.

Financially Defined Credit is the granting of money or something else of value in exchange for a promise of future repayment.

Managing your Personal Finances Managing your Personal Finances Unit 3 : Getting Your First Car Cash vs. Loan vs. Lease 1.

Interest Rates 4C Math Unit B – Credit Cards, etc.

 a type of credit that is typically started at the time of purchase for a specific asset  Common for purchases of $1,000 or more  Ex. car, motorcycle.

© 2009 Atova, Inc. All rights reserved. This document may contain proprietary and confidential information. This document and the information contained.

Using Percents to Solve Problems

The Cost of Credit BBI2O Introduction To Business Unit 3: Finance 3.D Credit.

Section 5-1 Monthly Payments. What do you know about Credit? Credit is whenever goods, cash, or services are provided in the promise to pay at a future.

Engineering Economy Why is Engineering Economy important? Practical everyday questions –Should you finance your car or pay cash? Finance for $6995 –vs-

Warm UP Problem Use graphic calculator or website What is the monthly payment and finance charge on the following loan? $3,500 – NO Down Payment 12% 30.

What is Your Interest? Discover the impact and power of interest.

Loans and Investments Lesson 1.5.

Sales tax, simple interest, and compound interest. FINANCES PART I.

My Future As I Know It Jennifer Smith 8 th Grade End of the Year Budgeting Project.

Interest and Discounts

Section 6.2 Notes. Can you afford a loan?  First way to tell  Second way to tell.

Interest (ing) Notes How to Calculate Simple Interest 2/11/10 Pre-Algebra.

Automobile Loans 9 th Grade Business Automobile Automobiles are typically purchased with cash or loan/ credit Auto loan-borrowed money to purchase an.

210 – Payment Function Buying a Car – The ABC’s So you want to buy a car! We must first look at all the variables! Car Price, Down Payment, Interest.

Buying A Car Topics Main Article The Bigger Picture Multimedia

Lesson3: Mortgage Payments Amortization = How long it takes you to pay off the house, ex: 10, 20 years or more. Down Payment = 1 st cash payment of at.

The Loan Welcome! So you’re looking to finance a car? Before you look at taking out loans make sure that you are financially able to pay for a vehicle.

Unit 5: Personal Finance Services of the Bank  Place to store your money safely – an Account.

Personal Finance: Automobile Payments & Maintenance

Math 1050 Mortgage project Maddie Gale p.2.

The Time Value of Money Lesson Starter Objectives Students will be able to –Use a formula to find the future value of a series of payments –Use.

Borrowing to Buy a Home 6.1. Down Payments and Closing Costs Terms to know: – Down Payment – Mortgage Loan – Principal – Closing Costs – Points.

CREDIT. QUESTIONS WE WILL ANSWER… What is credit? What does it cost to use credit? What are the advantages of using credit? Where can you get credit?

Financing My First Car By: Lindsey Wiesner. My Dream Car!

 Linda Jones by a new condo. Her new Condo costs $75,000. She puts 3% for her down payment and wants the loan for 5 years. She gets a fixed interest rate.

I can calculate the amount financed on an installment loan. I can find the monthly payment.

Copyright 2014 © W. Seth Hunter ConsumerMath.org L9.1 Understanding Interest Interest can be a life long friend or an unforgiving master. Making interest.

11.2 Exponential Functions. General Form Let a be a constant and let x be a variable. Then the general form of an exponential function is:

210 – Payment Function. Buying a Car – The ABC’s So you want to buy a car! We must first look at all the variables! Car Price, Down Payment, Interest.

Finance Advertisement 1 Advertisement 2 Deposit  Deposit = 20%  Retail Price = R EXAMPLE R x 20/100 = R

HAWKES LEARNING Students Count. Success Matters. Copyright © 2015 by Hawkes Learning/Quant Systems, Inc. All rights reserved. Section 9.4 Borrowing Money.

Copyright 2014 © W. Seth Hunter ConsumerMath.org L12.3 Home Loans BUYING A HOUSE A home can be a castle, a refuge from outside influences. Prepare for.

Aim: Money Matters: Amortization Course: Math Literacy Aim: How does money matter? Annuities in reverse: Amortization! Do Now:

INSTALLMENT LOANS Chapter 5, Section 3. I can… Calculate the installment price and finance charge on an installment plan purchase. Calculate the number.

Understanding Car Payments. Mark wants a go-cart. Mark wants a go-cart. A go-cart costs $500. A go-cart costs $500. Mark only has $100. This is his Down.

Bell Ringer 1/20/16 Make a list of some items you would like to purchase in the next few years Take out homework. We need to go over it.

What is Income? What is income? 2 Income is any money you earn plus any other money coming in to you! 3.

8.1 Single-Payment Loans Single-Payment Loan: a loan that you repay with one payment after a specified period of time. ◦ A promissory note is one type.

Bank Loans SS.8.FL.4.1 Explain that people who apply for loans are told what the interest rate on the loan will be. An interest rate is the price of using.

Buying a car Figuring out how much it will cost. Terms to know A.P.R.- Annual Percentage Rate Term: Amount of time you are going to pay on the loan. Principle:

Simple Interest By: Ms. Naira.

Buying a Car Personal Finance.

PRICING OUT MY FUTURE! Name: Hour:.

Buying a New Car.

PRICING OUT MY FUTURE! Name: Hour:.

Presentation transcript:

How to finance a car So you need a loan…

What is a down payment? This is the amount you already have saved up in cash to pay towards your car.

What amount should the down payment be? 20% So how do you calculate what the down payment amount will be? Multiply the total cost by.20

Help me calculate… What is the down payment for the following… 20% Down Payment O Truck Price $13,000 __________ O Sedan Price $23,000 __________ O Coupe Price $18,500 __________

Help me calculate… What is the down payment for the following… 15% Down Payment O Truck Price $10,500 __________ O Sedan Price $8,000 __________ O Coupe Price $22,500 __________

What is interest? (when we talk about car loans?) The amount you have to pay to barrow the money to pay for the car.

So, how do we calculate the monthly payments? 1. Purchase price of the vehicle 2. Add interest 3. How long is the loan 4. Did you make a down payment

You will plug all of these factors into the loan calculator…

You will get something that looks like…

This will tell you… O Your monthly payments O Your total loan amount O The down payment O Break down of your payment O for interest O for principal O Total interest for the whole loan

Lets calculate a few together… Car 1 - Purchase Price $ Interest Rate 9% - 24 months - Down Payment is 15% What are my monthly payments?

Lets calculate a few together… Car 2 - Purchase Price $ Interest Rate 10% - 36 months - Down Payment is 15% What are my monthly payments?

Lets calculate a few together… Car 3 - Purchase Price $ Interest Rate 8% - 48 months - Down Payment is 20% What are my monthly payments? What is the total loan amount?

Lets calculate a few together… Car 4 - Purchase Price $ Interest Rate 9% - 60 months - Down Payment is $1,790 What are my monthly payments? What is the total loan amount? What is the total interest?

Lets calculate a few together… Car 5 - Purchase Price $ Interest Rate 6% - 48 months - Down Payment is $5500 What are my monthly payments? What is the total loan amount? What is the total interest?

Lets calculate a few together… Car 6 - Purchase Price $ Interest Rate 12% - 60 months - Down Payment is 10% What are my monthly payments? What is the total loan amount? What is the total interest?