PART A: Your goal is to compare options for purchasing a vehicle Caution: You will be collecting information online and in person. The websites and dealerships will ask you for personal information because they see you as potential clients. Do not give out sensitive information that relates to your identity. Remember, any information you share will probably be used by them later so please be careful Loan Payment formula: P (PV) 1- (1+r) P= Payment PV - Present Value rate per period number of period Online Loan Payment Calculator use this calculator to complete the worksheet 1. Pick a vehicle that you would like to own. You must specify make, model, color, etc. and include a picture. 2. Use at least two online websites le gbmwusa.com, carpuru.com) or local dealerships to price a new and a used model of your dream vehicle Price for new Price for used New warranty Info Used warranty Info Worksheet 3. Using the best price for the new version of your vehicle Your credit is good, and at Banko Dinero you qualify for a five-year term car loan at 3% effective monthly rate. Use the table below to compare different repayment options. Deposit Amount you borrow Expected Total amount Total interest pald amount (loan amount) monthly repaid in 5 years over the full 5 years payment $0 $500 $1,000 $1,500 $2,000 If you could afford any of the deposit amounts, which option would you pick? Explain why. Banko Dinero also offers you a three-year car loan at 3% effective monthly rate. Use the table below to compare different repayment options. Deposit Amount you borrow Expected Total amount Total Interest pald amount (loan amount) monthly repaid in 3 years over the full 3 years payment $0 $500 $1000 $1500 $2000 Describe the impact the new three-year term has. Which option would you pick if you could afford any deposit amount? Explain why. Now consider a scenario where your credit is not the best. Banko Dinero offers you a five-year car loan at 10% effective monthly rate. Use the table below to compare different repayment options. Deposit Amount you borrow Expected amount (loan amount) monthly payment $0 Total amount repaid in 5 years Total Interest pald over the full 5 years $500 $1000 $1500 $2000 Describe the impact the new rate has. Which option would you pick if you could afford any deposit amount? Explain why. 4. Visit Salary.com and find the median salary for your future career. Using that median salary calculate your gross monthly salary. Multiply your monthly salary by 0.75 to find your net monthly salary (after taxes, insurance, etc.) 5. Based on your projected net monthly salary, choose the option (using the tables in question 1) that best suits your needs. Explain why you made that choice. Would you consider buying your vehicle used instead of new? Explain why? PART B: The goal of this project is to explore credit card spending and repayment. You owe $3,200 on your credit card. The card charges 16% monthly interest on your balance and requires a minimum payment of 2.5% of your balance. All transactions (payments and interest charges) are recorded at the end of the month. You make only the minimum required payment every month and you do not use the card for any new purchases. Complete the table below. Month Interest Minimum Payment Balance at the start of the month Balance at the end of the month 0 3200.00 1 2 3 4 5 6 7 8 9 10 11 12 After one year, what is your unpaid balance? How much of your debt have you paid off? How much interest have you paid? How long will it take to pay off the credit card? PART A: Your goal is to compare options for purchasing a vehicle Caution: You will be collecting information online and in person. The websites and dealerships will ask you for personal information because they see you as potential clients. Do not give out sensitive information that relates to your identity. Remember, any information you share will probably be used by them later so please be careful Loan Payment formula: P (PV) 1- (1+r) P= Payment PV - Present Value rate per period number of period Online Loan Payment Calculator use this calculator to complete the worksheet 1. Pick a vehicle that you would like to own. You must specify make, model, color, etc. and include a picture. 2. Use at least two online websites le gbmwusa.com, carpuru.com) or local dealerships to price a new and a used model of your dream vehicle Price for new Price for used New warranty Info Used warranty Info Worksheet 3. Using the best price for the new version of your vehicle Your credit is good, and at Banko Dinero you qualify for a five-year term car loan at 3% effective monthly rate. Use the table below to compare different repayment options. Deposit Amount you borrow Expected Total amount Total interest pald amount (loan amount) monthly repaid in 5 years over the full 5 years payment $0 $500 $1,000 $1,500 $2,000 If you could afford any of the deposit amounts, which option would you pick? Explain why. Banko Dinero also offers you a three-year car loan at 3% effective monthly rate. Use the table below to compare different repayment options. Deposit Amount you borrow Expected Total amount Total Interest pald amount (loan amount) monthly repaid in 3 years over the full 3 years payment $0 $500 $1000 $1500 $2000 Describe the impact the new three-year term has. Which option would you pick if you could afford any deposit amount? Explain why. Now consider a scenario where your credit is not the best. Banko Dinero offers you a five-year car loan at 10% effective monthly rate. Use the table below to compare different repayment options. Deposit Amount you borrow Expected amount (loan amount) monthly payment $0 Total amount repaid in 5 years Total Interest pald over the full 5 years $500 $1000 $1500 $2000 Describe the impact the new rate has. Which option would you pick if you could afford any deposit amount? Explain why. 4. Visit Salary.com and find the median salary for your future career. Using that median salary calculate your gross monthly salary. Multiply your monthly salary by 0.75 to find your net monthly salary (after taxes, insurance, etc.) 5. Based on your projected net monthly salary, choose the option (using the tables in question 1) that best suits your needs. Explain why you made that choice. Would you consider buying your vehicle used instead of new? Explain why? PART B: The goal of this project is to explore credit card spending and repayment. You owe $3,200 on your credit card. The card charges 16% monthly interest on your balance and requires a minimum payment of 2.5% of your balance. All transactions (payments and interest charges) are recorded at the end of the month. You make only the minimum required payment every month and you do not use the card for any new purchases. Complete the table below. Month Interest Minimum Payment Balance at the start of the month Balance at the end of the month 0 3200.00 1 2 3 4 5 6 7 8 9 10 11 12 After one year, what is your unpaid balance? How much of your debt have you paid off? How much interest have you paid? How long will it take to pay off the credit card