Car Loans and Terms Key

32884 In Whose Best Interest is Interest

Which is the better option?

2014 Shmeep 3.0 AWD $15,999

$1,000 down and 2.99% APR for 60 months
15,999−1,000=14,999

I = prt , so I =( 14,999 )( .0299 ) ( 5 )=¿ 49 ¿ 2,242.35

¿ addition ¿ the $ 15,999 , you will be paying $ 2,242.35∈interest . $ 15,999+$ 2,242.35=$ 18,241.35
If you divide that into 60 montly payments , you will be paying $ 304.02 every monthor

$2,000 down and 3.49% APR for 72 months.

15,999−2,000=13,999

I = prt , so I =( 13,999 )( .0349 ) ( 6 ) =¿ 49 ¿ 2931.39

¿ addition ¿ the $ 15,999 , you will be paying $ 2,931.39∈interest . $ 15,999+$ 2,931.39=$ 18,930.39
If you divide that into 72montly payments , you will be paying $ 262.92every monthWhile it appears
you will be making smaller payments each month with the second option, you are ultimately paying
689.04 to have a lower monthly payment.

The all-new four door Shmerokey SUV

$32,999
Which is the best option for a new Shmerokey?
No money down and 3.99% APR for 72 months

I =( 32,999 ) ( .0399 )( 6 )=7899.96$ 32,999+$ 7,899.96=$ 40,898.96$ 40,898.96 ÷ 72=$ 568.04

 Car Loans and Terms Key
32884 In Whose Best Interest is Interest

$3,000 down and 2¾% APR for 60 months

$ 32.999−$ 3,000=29,999I =( 29,999 ) ( .0275 )( 5 )=4124.86$ 32,999+$ 4124.86=$ 37,123.86
$ 37,123.86 ÷60=$ 618.73

$4,500 down and 1.99% APR for 60 months

$ 32,999−$ 4,500=28,999I =( 28,499 ) ( .0199 )( 5 )=2,835.65$ 32,999+$ 2,835.65=$ 35,834.65
$ 35,834.65÷ 60=$ 597.24Have students make comparison amongst the term lengths and
monthly payments and rates.