My Car Payment Project

My total car cost is $32,890. My down payment is $6,578. This makes my total loan amount out to be $26,312

For structure #1, I calculated the monthly payments with a 6% APR and 4 year term and got payments $794.08 per month.

For structure #2, I calculated the monthly payments with a 5.5% APR and a 5 year term. The payments are $501.38.

For structure #3, I calculated the monthly payments with a 5% APR and a term of 6 years. The payments are $423.75.

1.  Compare the three car payment structures. In terms of its monthly payment, which payment structure would be the least expensive?

The least expensive option, in monthly payment terms, would be structure #3.

2. Compare the three car payment structures. In terms of the amount paid in interest, which payment structure would be the least expensive?

The least expensive option, in terms of amount of interest , would be structure #2.

3. Compare the three car payment structures. In terms of the amount paid in total over the life of the loan, which payment structure would be the least expensive?

The least expensive option, in terms of amount paid in total, would be structure #2.

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