Use the AllState website to compare two different loan offers from a car dealer of your choice. Be sure to use the same car value for each loan

Which loan is the better value? Explain your reasoning. Are there other factors to consider before determining which offer to go with?

Calculate the payments yourself using the formula we learned in the first half of this unit. Do your values match those of the amortization app found at the site above?

(Hint: You should use the formula for monthly payment from 3-3 in your text.)

www.google.com x 9 Students Home X Discussion 5 - M/ x _ My Courses Hom X Columbia College X course hero log it X Course Hero X + X https://ccis.vitalsource.com/reader/books/9781264075003/epubcfi/6/64[%3Bvnd.vst.idref%3Df31_Lesson03-03]!/4/296/4/2/1:61 [th1%2Cy%20p] Q AA ... 50 100 150 200 MATH MATH IN OUR WORLD: A ... Months COREQUISITE APPROACH Suppose that you want to avoid paying interest and decide you'll only buy the furniture when you have the money to pay for it. An annuity is basically the opposite of a fixed installment loan: you deposit a fixed amount each month and receive interest David Sobecki based on the total amount that's been saved. The future value formula is 12M (1+ 12) - 1 Expand | Collapse A = - ^ Unit 3: MANAGING YOUR MONEY 251 where Mis the regular monthly payment, / is the annual interest rate in decimal form, and f is the term of the annuity in years. Lesson 3-1: A Topic of Interest 253 (Simple Interest) 255 Math Note There are great technology options for calculating the future value of an annuity. The TVM solver on a TI-83 or 84 can be Lesson 3-2: Like a Snowball Rolling 267 used, and there's a future value calculator in Excel as well: the =FV command. A quick Internet search will provide more info, Downhill (Compound Interest) 269 and we've provided a tutorial video in the resources for this lesson. 7. With a monthly payment of $120, what would the future value be if you chose an annuity with a term of 2 years at 4.8% Lesson 3-3: Buying Stuff Without 285 interest? Money (Installment Buying) 287 S. Recalculate the amount if you're willing to raise your monthly payment by $20 per month. Lesson 3-4: Investing in Yourself 307 9. Discuss the options you've seen for obtaining the furniture, focusing on which you think sounds like the best choice. You (Education and Home Loans) 309 might consider combinations of these choices. Try to consider as many factors as you can. page 306 Lesson 3-5: A Walk on Wall Street 325 (Starke and Ronde) 397