2.2 Lifetime Loan Cost

Transcription

1 2.2 Lifetime Loan Cost

2 WARM UP - BUDGET Get our your Unit 2 Budget Sheet. 1) Fill in your weekly net pay to add to your budget. 2) Fill in the allotments for the different categories. They do NOT have to be the same as week 1 you may adjust. 3) Add what you had left in each category to what you just budgeted for that category. Write that in the budget column on the first line.

3 WARM UP - BUDGET You will roll two D6 with one representing your row and one representing your column (indicate which is which BEFORE rolling). These results will randomly determine your weekly spending results.

4 BUDGET SHEET FOOD EXPENSES Eat Out: 0 Avg Cost: $0 Eat Out: 1 Avg Cost: $1 Eat Out: 2 Avg Cost: $1 Eat Out: 3 Avg Cost: $1 Eat Out: 4 Avg Cost: $1 Eat Out: 5 Avg Cost: $1 2 Eat Out: 0 Avg Cost: $0 Eat Out: 1 Avg Cost: $2 Eat Out: 2 Avg Cost: $2 Eat Out: 3 Avg Cost: $2 Eat Out: 4 Avg Cost: $2 Eat Out: 5 Avg Cost: $2 3 Eat Out: 0 Avg Cost: $0 Eat Out: 1 Avg Cost: $3 Eat Out: 2 Avg Cost: $3 Eat Out: 3 Avg Cost: $3 Eat Out: 4 Avg Cost: $3 Eat Out: 5 Avg Cost: $3 4 Eat Out: 0 Avg Cost: $0 Eat Out: 1 Avg Cost: $4 Eat Out: 2 Avg Cost: $4 Eat Out: 3 Avg Cost: $4 Eat Out: 4 Avg Cost: $4 Eat Out: 5 Avg Cost: $4 5 Eat Out: 0 Avg Cost: $0 Eat Out: 1 Avg Cost: $5 Eat Out: 2 Avg Cost: $5 Eat Out: 3 Avg Cost: $5 Eat Out: 4 Avg Cost: $5 Eat Out: 5 Avg Cost: $5 6 Groceries $20 Groceries $20 Groceries $30 Groceries $30 Groceries $40 Groceries $50

5 BUDGET SHEET CAR EXPENSES No Expenses No Expenses No Expenses No Expenses No Expenses No Expenses 2 No Expenses No Expenses No Expenses No Expenses No Expenses No Expenses 3 No Expenses No Expenses Gas 5 gallons $2.38/gallon Gas 8 gallons $2.38/gallon Gas 10 gallons $2.38/gallon Gas 12 gallons $2.38/gallon 4 No Expenses No Expenses Gas 5 gallons $2.45/gallon Gas 8 gallons $2.45/gallon Gas 10 gallons $2.45/gallon Gas 12 gallons $2.45/gallon 5 No Expenses No Expenses Car Payment & Insurance $25 Car Payment & Insurance $50 Car Payment & Insurance $75 Car Payment & Insurance $100 6 No Expenses No Expenses Car Repairs $50 Car Repairs $100 Car Repairs $150 Car Repairs $200

6 BUDGET SHEET PLAY EXPENSES No Expenses Movies $5 Music $1 No Expenses No Expenses Video Game Rental $2 2 No Expenses Movies $5 Music $1 Concert Tickets $10 No Expenses Video Game $10 3 No Expenses Movies $5 Music $2 No Expenses No Expenses No Expenses 4 No Expenses Movies $10 Music $2 Concert Tickets $25 No Expenses Video Game $30 5 No Expenses Movies $15 Music $5 No Expenses No Expenses No Expenses 6 No Expenses Movies $20 Music $15 Concert Tickets $50 No Expenses Video Game $60

7 BUDGET SHEET MISCELLANEOUS EXPENSES Fees $7 No Expenses No Expenses No Expenses No Expenses Clothes $10 2 No Expenses Fees $17 No Expenses No Expenses Pet $13 Clothes $20 3 No Expenses No Expenses Fees $27 Pet $11 No Expenses Clothes $30 4 No Expenses No Expenses Pet $9 Fees $37 No Expenses Clothes $40 5 No Expenses Pet $7 No Expenses No Expenses Fees $47 Clothes $50 6 Pet $5 No Expenses No Expenses No Expenses No Expenses Clothes $60

8 OBJECTIVES Understand what a loan and interest rate are Be able to calculate the overall cost of a loan over it s lifetime

9 LOANS A loan is money that is given to someone with the intent that it will be paid back. Purchases that are VERY large amounts of money can be made with a loan so you can pay for them in monthly installments, rather than all up front. What type of purchases typically require loans?

10 LOANS Types of loans House Car Student loans Personal

11 LOANS AND INTEREST Interest is a sum paid for borrowing money; what you pay in addition the money you borrowed An interest rate is the percent that you agree to pay in interest.

12 CAR LOAN 2014 Honda Accord LX (Basic) $15,998 You choose a car loan of : 5 years (60 months) 2.79% interest rate (Alpine Credit Union) Monthly payment: $285.97

13 CAR LOAN If you have that monthly payment of $ for 5 years, how much will you have paid total over the lifetime of the loan? How much more is that than the cost of the car ($15998)?

14 CAR LOAN If you have that monthly payment of $ for 5 years, how much will you have paid total over the lifetime of the loan? $ x 60 = $17, How much more is that than the cost of the car ($15998)? $17, ,998 = $1,160.20

15 STUDENT LOANS 4 years undergrad $5,000 a year You have student loans with : 10 years 5.5% interest rate Monthly payment: $217.05

16 STUDENT LOANS If you have that monthly payment of $ for 10 years, how much will you have paid total over the lifetime of the loan? How much more is that than the amount you borrowed?

17 STUDENT LOANS If you have that monthly payment of $ for 10 years, how much will you have paid total over the lifetime of the loan? $ x 120 = $26,046 How much more is that than the amount you borrowed? $26,046 - $20,000 = $6,046

18 MORTGAGE Home in Lehi, UT Loan amount: $267,300 You have a mortgage: 30 years 4.25% interest rate Monthly payment: $

19 MORTGAGE If you have that monthly payment of $1315 for 30 years, how much will you have paid total over the lifetime of the loan? How much more is that than the amount you borrowed?

20 MORTGAGE If you have that monthly payment of $1315 for 30 years, how much will you have paid total over the lifetime of the loan? $1315 x 360 = $473,400 How much more is that than the amount you borrowed? $473,400 $267,300 = 206,100

21 OBJECTIVES Understand what a loan and interest rate are Be able to calculate the overall cost of a loan over it s lifetime

22 HOMEWORK Assignment 2.2