Respond to at least one classmate’s initial post by answering the following:
· Think about then show the formula with numbers for what happens to the interest, the total amount of a loan, and monthly payments of your classmate’s loan if the time was reduced by one and a half years at the start of the loan. You may use a calculator to perform the computations.
· Explain why your classmate will pay a different amount (more or less) for the loan in the end. Were you surprised by the results? Why or why not?
· If this was your loan and dream object, discuss one change you could make in your life to make the new monthly payment possible. What would you expect to happen if the time was increased at the start of your classmate’s loan? Why?
Jun 1 at 15:23pm Julian Richmond
Connor McGregor’s $3.6 million Tecnomar Lamborghini 63 speed boat.
I = PRT
Principal = $3,600,000
Interest Rate = 9.5%
Years = 11 (132 equal payments)
Question 1: How much interest am I paying?
Question 2: What is my monthly payment?
Monthly Payment= $55,772.73
Reply 2 Taylor Pace
Respond to a different classmate’s initial post by answering the following:
· What do you think will happen if the interest rate provided in your classmate’s post was decreased by one percentage point at the start of the loan? Explain why.
· Confirm your answer. Show the formula with numbers and compute the new interest your classmate will pay with this new interest rate. You may use a calculator to perform the computations.
· Compare the interest of the two loans. Share with your classmate how much interest will be saved over the loan length.
Review the Discussion Rubric for detailed grading information.
Please proceed to the Why? section.
I have enjoyed the first part of this module very much. I enjoy any vehicle manufacturer’s build and price section of their website because I love trucks so much. As always, I am now disgusted with the financial responsibility of these monstrosities that I build.
Here is my latest creation! https://www.gmc.com/trucks/sierra/3500hd/sle-slt/build-and-price/summary (Links to an external site.)
The total of the truck is $90,150 (P), with an interest rate of 5% (R), with a period of payment over 6 years (T).
Using the formula for interest accumulated, I=PRT (I=90,150 x .05 x 6), we find that the total interest paid over the time period is $27,045.
Using the formula for total amount of money at the end of the time period, A=P+I (A= 90,150 + 27,045), we find the total to reach, an absolutely devastating to my dreams number, $117, 195.
To find the monthly payment, we simply find how many payments will be made, months (M), and divide the amount (A) by that value. X=A/M
117,195 / 72 = 1,627.71
That number just hurt me.
To verify that is correct, multiply monthly payment amount by months, 167.71 x 72 = 117,195.
I hop everyone is doing well, this assignment broke my heart.