The problem: Amanda's current debt consists of three types of loans: a bank card, an auto loan and a department store card. She owes a total of $25,000 and her monthly payments sum to $521.77.

The amount she owes, the monthly payment and the interest rates appear in the table below:

Loan Type	Annual Percentage Rate, (APR)		Loan Amount Current Debt	Monthly Payment
Bank Card	18%		$10,000	$203.21
Auto Loan	5.5%		$12,500	$238.76
Department Store Card	15%		$ 2,500	$ 79.80
TOTALS			$25,000	$521.77

Amanda is having a hard time meeting the monthly payments and is considering consolidating the three loans to reduce her total monthly payments. She has been offered two options. In both cases, she would borrow $25,000 to pay off her existing three loans leaving her with a single loan payment to a loan company.

III. Option C Assume Amanda rejects both Options A and B and decides to continue making her current monthly payments.

a) How many months will it take to pay off each of the original loans?

Bank Card TVM Solver: N = I% =18 PV =10,000 PMT = 203.21 FV = P/Y = C/Y = Pmt End

Auto Loan TVM Solver: N = I% = PV = PMT = FV = P/Y = C/Y = Pmt End

Department Store Card TVM Solver: N = I% = PV = PMT = FV = P/Y = C/Y = Pmt End

2. How much in total will she pay for each loan? Put your answers in column 6 in the table below along with the corresponding number of months that she has to pay each loan until it is paid off. What is the grand total amount paid on all three loans? Enter this number in the table also.

Loan Type	APR	Loan Amount	Monthly Payment	Number of months paying off the loan	Amount Paid
Bank Card	18%	$10,000	$203.21
Auto Loan	5.5%	$12,500	$238.76
Department Store Card	15%	$ 2,500	$ 79.80
TOTALS		$25,000	$521.77	Grand total paid:

7. Use your favorite spreadsheet application to write down the amortization schedules for each loan, under option C (pay all loans without a consolidation plan). Attach those amortization schedules to your project.

8. What should Amanda do? Develop a good option D for Amanda. Should she take option A, B or C? Is there maybe a better financial solution for her to become debt free? Advise Amanda on what she should do and explain why your recommendations are good. Attach your answer.