### 1 / 4 MAT 143 Comparing Loan Options Chapter 4 LAB B Please print and complete this lab.

1 / 4

MAT 143 Comparing Loan Options

Don't use plagiarized sources. Get Your Custom Essay on
1 / 4 MAT 143 Comparing Loan Options Chapter 4 LAB B Please print and complete this lab.
Just from \$9/Page or 300 words

Chapter 4 LAB B

Please print and complete this lab. Once you’ve completed the lab, please answer the questions that correspond with this lab in Moodle in the “Chapter 4 Answer Entry Sheet” located in Chapter 4.

Comparing Loan Options

Learning Outcomes:

Upon completion students will be able to:

• * Calculate loan payments, total payments and total interest and principal.
• * Analyze loan options and mortgage options.
• * Use online tools to determine payments on consumer loans, and to ask appropriate questions about loans.

Problem 4 is worth 10 points. All other problems are worth 6 points. Total = 100

2 / 4

In this lab, we will compare 3 different loan options. Suppose that you are buying a house for \$205,000. The loan is at a fixed APR of 3.5% for 30 years.

Option 1: Making a down payment

• 1. If a 10% down payment is required, calculate this amount: ______________
• 2. What amount remains to be financed (this will be your loan amount)? _____________

(Please write this value in the chart below in the first row under “Balance”.)

• 3. Use the “Loan Payment Formula” to calculate your monthly payment: ______________

(Note that property tax and homeowner’s insurance will usually be added to the monthly payment, but we will look at just the payment on the principal for comparison purposes.)

• 4. A table of principal and interest payments over the life of a loan is called an amortization table. Amortization tables can be built by hand but are ideally built with a spreadsheet or using an online tool. Go to Moodle and use the “Amortization Table Spreadsheet for Chapter 4 Lab” to complete the Amortization Table below.

You can now contact our live agent via whatsapp! ping +1 (714)-584-4466.
You will get plagiarism free custom written paper