My Car Loan p.

My Car Loan
Car Make and Model_____________________________________________ Car MSRP _______________________________ Total Cost to Buy Your Car _____________________ My FICO Score_____________________________________

APR Chart for all Loan Terms and All FICO Scores
Use http://www.myco.com/helpcenter/autos/ to ll in the APRs for all the blanks below. Round to the hundredths place. When you are done, use a highlighter to highlight the row that matches your score.

FICO Score 720-850 690-719 660-689 620-659 590-619 500-589

36 mo. loan

48 mo. loan

60 mo. loan

72 mo. loan

4.77% 5.71% 7.75% 11.44% 16.87% 18.12%

Questions Part 1

1. What is a FICO score?

2. What is the best possible FICO score? 3. What does APR stand for? 4. What does APR actually mean?

Indicates a question that does not require a computer if you have already found the other information.

My Car Loan p. 2 Use http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx to calculate your monthly payment. Show your work for the Total amount paid and Total interest paid below. You may use a calculator only for the las row.

APR and Cost Comparison Chart for Your Car

36 mo. loan
Total amount borrowed APR Monthly payment

48 mo. loan

60 mo. loan

72 mo. loan

Total
amount paid

Total interest
paid

What
percentage of interest would you actually pay?

Show formula & answer:

Show formula & answer:

Show formula & answer:

Show formula & answer:

1.

Show work for total amount paid for each loan:

36 month loan 48 month loan 60 month loan 72 month loan

2.

Show work for total interest paid for each loan.

36 month loan 48 month loan 60 month loan 72 month loan

Indicates a question that does not require a computer if you have already found the other information.

My Car Loan p. 3

Questions Part 2
1.

Which loan is the most expensive? How much more than you borrowed do you have to pay back?

2.

Which loan is the least expensive? How much more than you borrowed do you have to pay back?

3. Which loan has the biggest difference between the APR and the percentage of interest you actually have to pay? What is the difference between the APR and actual percentage of interest? (Show work.)

4. Which loan has the smallest difference between the APR and the percentage of interest you actually have to pay? What is the difference between the APR and actual percentage of interest? (Show work.)

Indicates a question that does not require a computer if you have already found the other information.

My Car Loan p. 4 Bonus Activities Complete the following for bonus points. 1. Most people put a down-payment on their car. They pay some cash up front when they buy the car so they can borrow less. Using only a 48 month loan, make a chart similar to the one on page 2. Fill in all the numbers assuming you made a $500 down-payment. In the next column ll in all the numbers assuming you made a $1000 downpayment, and in the nal column ll in the numbers assuming a $2000 down-payment. Show your work as you did on page 2. (10 points)

2. For each down-payment, how much did you save compared to no down-payment? Dont forget to add the downpayment back into the Total amount paid rows. Show your work. (5 points)

Indicates a question that does not require a computer if you have already found the other information.

My Car Loan p. 5 Bonus Activites (contd) 3. A low FICO score can cost a person a lot of money. People with low FICO scores pay higher interest rates on loans. Make a chart below that compares a 60 month loan for your car for a person with a credit score of 500 and another person with a credit score of 820. Show your work as you did on page 2. (10 points)

4. What is the difference in the total cost of the car loan between the person with a score of 820 and a person with a score of 500? (Show work.)

Indicates a question that does not require a computer if you have already found the other information.