Payment Calculator Assignment Instructions: Using the Payment Calculator, answer the following questions.

1. Purchase a house:

$275,000 price

$10,000 down payment

Interest rate is 7%

Term is 30 years

What is the TOTAL Cost?

Why is the total cost so high?

2. Purchase a Party Boat:

$65,000 price

$500 down payment

Interest rate is 4%

Term is 6 years.

What is payment?

3. Purchase a new truck:

$60,000

$2,000 down payment

Interest rate is 8%

Term is 6 years

Down payment is $2,000

What is payment?

Change the down payment to $5,000, how much less is the new payment?

Change the interest rate to 3.95, how much less is the new payment?

4. Purchase a Zero Turn lawn mower:

Price: $8500

0 down payment

7.9 interest rate

Term is 4 years

What is payment?

Change interest rate to 10%, what is the new payment amount?

What is the TOTAL amount of the Zero Turn Mower at 10% interest?

What is the TOTAL amount of interest paid for the mower at 10% interest?

5. Purchase a house:

Price: $200,000

Down Payment: $500

3.9 interest rate

Term is 30 years

What is monthly payment?

What is the total amount of interest to be paid after 30 years?

Change Term to 15 years, what is the new payment?

Change interest rate to 2.9%, what is the new payment?

Change down payment to 5,000 and term to 30 years, what is the new payment?

6. After completing this assignment, why is it SO important to value a high credit score?

7. Why is it important to save for a down payment?

8. What is included in TOTAL cost?

9. How is a payment affected with a longer term?

10. How is a payment affected with a shorter term?