Name Class Days and Time Decision Science 71 - Finance Project I. Let's Buy a Car Find an automobile you would like to purchase and include a printout of the vehicle. The printout needs to include a picture of the vehicle, the make, the model, the year of the vehicle, and the price. 1.) What vehicle did you choose? Make What is the price of your vehicle? Model Year 2.) To cover taxes, licensing fees, and document fees, add an additional 10% to the price. What is the new amount? 3.) Choose an amount that you would pay as a down payment. A down payment is subtracted from the purchase amount to lower the amount borrowed. What is your down payment (no more than half the purchase price)? 4.) How much will you be financing? A. When a vehicle is purchased and financed through a car dealership, a simple interest loan is typically offered to finance the balance owed. 5.) Use the following numbers to calculate your monthly car payment. Simple Interest Loan Time = 6 years (72 months) Rate = 6.5% Show all of your work! What is the monthly car payment? 6.) How much will you pay in total for this car? Remember to add in the down payment. 7.) How much interest will you pay? B. When the same car is financed through a bank or credit union, the loan is amortized. 8.) We are using the same information as #5, but this time calculate the monthly car payment by Amortizing Loan Time = 6 years (72 months) Rate = 6.5% Show all of your work! What is the monthly car payment? 9.) How much will you pay in total for this car? Remember to add in the down payment. 10.) How much interest will you pay? 11.) Which type of loan would you choose and why? Let's Buy a House nd a listing for a house you might like to buy. Attach a copy of the listing as part of the project. The listing eds to have a picture of the house, the address and the price. Use its information to answer the following questions. 1.) What is the price of your home? 2.) If the down payment is 20% of the price, how much is your down payment?_ deposits at the end of each month for the next 10 years, how much should your repeated deposits be to have 3.) If you choose to save up for the down payment in a mutual fund earning 9% compounding monthly, making up the down payment in 10 years? 4.) Assuming you finance the other 80%, how much will you need to finance? 5.) Find your monthly house payment. Research possible loans through an online financial resource (i.e. Bankrate.com, Lendingtree.com, Google current mortgage rates, etc.) Length of loan - choose a 15-year fixed mortgage Rate for loan: Company offering this rate? Monthly house payment 6.) How much will you pay for this house in total? (Include the down payment) 7.) What is the total amount of interest that you would pay for this loan? 8.) If your housing costs should be approximately 25% of your monthly income, how much will your monthly income need to be able to afford this house? Create an Amortization Schedule for the loan and attach the first page of it with the project. According to the amortization schedule you printed, how much of the second payment goes toward paying off the money you borrowed?