Loans, Part II: Paying Off Loan.

In this part of the project, you will be examining different strategies for paying off loans. The first type of loan is a credit card balance, where the consumer is free to choose the monthly payments and the length of time to pay off the balance. The second type of loan is a mortgage, which is structured around a set time period and set payments, but which a borrower can choose to pay off early.

D$.$ Most sources say that, for U$.$S$.$ adults who carry a balance on their credit card, the average balance is between $$5000$ and $$6000$; the average credit card APR is typically about $17\mathrm{.}7\%.$

Suppose Devyn has a $$5000$ balance on their credit card and has an APR of $17\mathrm{.}7\%.$

$7.$ If Devyn wants to pay off the account balance in $5$ years,

What will their monthly payments be$?$

How much will it cost in total for them to pay off the loan?

How much will they have paid, in total, in interest?

$8.$ If Devyn wants to pay off the account balance in $2$ years,

What will their monthly payments be$?$

How much will it cost in total for them to pay off the loan?

How much will they have paid, in total, in interest?

$9.$ If Devyn wants to pay off the account balance in $1$ year,

What will their monthly payments be$?$

How much will it cost in total for them to pay off the loan?

How much will they have paid, in total, in interest?

$10.$ If Devyn wants to pay off the account balance in $6$ months,

What will their monthly payments be$?$

How much will it cost in total for them to pay off the loan?

How much will they have paid, in total, in interest?

Loans, Part II: Paying Off a Loan.

In this part of the project, you will be examining different strategies for paying off loans. The first type of loan is a credit card balance, where the consumer is free to choose the monthly payments and the length of time to pay off the balance. The second type of loan is a mortgage, which is structured around a set time period and set payments, but which a borrower can choose to pay off early.

E$.$ Emerson takes out a $30-$year mortgage for $$200,000$ with a $3\mathrm{.}48\%$ APR.

$($For all parts of this question, round up to the cent.$)$

$11.$ What will Emerson$$s monthly payments be$?$

$12.$ After $10$ years, How much has Emerson paid in total?

What is the remaining balance at this point?

If they were able to pay off balance at this time, how much would they have paid in total to the lender?

$13.$ After $20$ years, how much has Emerson paid in total?

What is the remaining balance at this point?

If they were able to pay off balance at this time, how much would they have paid in total to the lender?

$14.$ If Emerson takes the full $30$ years to pay off the mortgage, how much would they paid in total to the lender?

Loans, Part III: Time After Time.

In this part of the project, you will be examining how the length of time planned to pay off a loan $($called the term to the loan$)$ affects the loan payments.

F$.$ Frankie is going to take out a $$10,000$ loan at $3\mathrm{.}6\%$ APR with monthly payments.

$15.$ If the loan is to be repaid over $10$ years, what will Frankie$$s monthly payments be$?($Round up to the cent.$)$

How much will they pay over the life of the loan?

$16.$ If the loan is to be repaid over $15$ years, what will Frankie$$s monthly payments be$?$

$($Round up to the cent.$)$

How much will they pay over the life if the loan?

$17.$ If the loan is to be repaid over $20$ years, what will Frankie$$s monthly payments be$?$

$($Round up to the cent.$)$

How much will they pay over the life of the loan?

$18.$ If the loan is to be repaid over $25$ years, what will Frankie$$s monthly payments be$?$

$($Round up to the cent.$)$

How much will they pay over the life of the loan?