Choose a Car that cost more than \$100,000

Use Loan 1 to answer these questions
1. If the interest rate was 6% and the length of the loan was 10 years, what would your monthly payment be?
2. How much would you pay in interest?
3. What would be the total amount paid?

Use Loan 2 to answer these questions
4. If the interest rate was 6% and the length of the loan was 5 years, what would your monthly payment be?
5. How much would you pay in interest?
6. What would be the total amount paid?
7. Based off of your answers above, what is the relationship between the length of the loan, the monthly payment, and the total amount paid?

Use Loan 3 to answer these questions.
8. Assume you want to pay a maximum of \$250 per month for a new car. Calculate how many months would it take to pay it off?
9. Also, assume that you are willing to take out a five-year loan at an interest rate of 5 percent. Calculate the maximum selling price of a car you can afford, based on those assumption.

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