Choosing the Best Deal for a Loan (100 pts.) 
(Activity 2.4 & 2.5 Extension Activity) 

1.	Jesse has his eye on a used truck.  Of the many options that are available, which do you think is the better deal if he borrows $10,000?

I believe situation c is the best choice because it has the lowest total interest on the payment. 

Use the online “loan amortization” calculator to determine what the loan payments will be each month, the interest that will be paid etc. in each of the given scenarios.  Use this to determine which is the “best” deal and why.  *Be sure to copy/paste a screen shot of the amortization table into this document for each example AND list the monthly loan payment (principal + interest) for an additional 5 points.

a.	5.5% APR payable in 3 years (15 pts.)

b.	6.5% APR payable in 4 years (15 pts.)

c.	3.5% APR payable in 2 years (15 pts.)

2.	Mariah has her eye on a used sedan.  Of the many options that are available, which do you think is the better deal if she borrows $8,000?  

I believe the better deal would be situation c because it has the lowest amount of interest. 

Use the online “loan amortization” calculator to determine what the loan payments will be each month, the interest that will be paid etc. in each of the given scenarios.  Use this information to determine which is the “best” deal and why.  *Be sure to copy/paste a screen shot of the amortization table into this document for each example AND list the monthly loan payment (principal + interest) for an additional 5 pts.

a.	5.5% APR payable in 3 years (15 pts.)

b.	6.5% APR payable in 4 years (15 pts.)

c.	3.5% APR payable in 2 years (15 pts.)