Module 4 Project š§: Finance š°
For this project, you will use your finance skills to make a purchase.
Step 1
Choose one of the three following scenarios:
ā¢ Purchase a car
ā¢ Purchase a house
ā¢ Finance college
Step 2
Find a reasonable price for your purchase or future cost of college (attach an example from the
newspaper, Internet, or other reputable source – this can be an image from the newspaper,
print out from the Internet, etc.).
Step 3
Find the current interest rate (attach an example from a loan officer at a bank, Internet, or
other reputable source – this can be an image from the newspaper, print out from the Internet,
etc.).
Sources on the Internet:
(Do not round the interest rate – use the exact interest rate given from the financial institution.)
Step 4
Assume there is no down payment: Calculate your monthly payments over the life of the
loan/purchase.
2
Step 5
Still assuming there is no down payment, calculate your total payments over the life of the
loan/purchase.
Step 6
How much interest are you paying over the life of the loan/purchase?
Step 7
Assume you are making a 10% down payment or if you are looking at college loans, assume you
are receiving 10% of the loan from your parents, i.e., you are borrowing less: Calculate your
monthly payments over the life of the loan/purchase.
Step 8
Still assuming you are making a 10% down payment, calculate your total payments over the life
of the loan/purchase.
Step 9
How much interest are you paying over the life of the loan/purchase?
Step 10
What is the absolute difference in interest from making no down payment to making a 10%
down payment?
Step 11
Would you suggest making a down payment or not? Why or why not? Use your results above to
justify your answer.
Step 12
Write a paragraph summarizing why you picked the scenario and what you learned from this
project in the context of your scenario