1 / 7

Loan Payment Problem

Loan Payment Problem. By Molly St. Cyr. What do I want?. I would like to buy a 32 GB Ipod Touch . This particular Ipod costs $399.00 at the Apple Store. In order to get the price of the Ipod WITH TAX, I must multiply $399.00 by $1.06 (the PA sales tax rate). The total price is $422.94.

rupert
Download Presentation

Loan Payment Problem

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Loan Payment Problem By Molly St. Cyr

  2. What do I want? I would like to buy a 32 GB Ipod Touch. This particular Ipod costs $399.00 at the Apple Store. In order to get the price of the Ipod WITH TAX, I must multiply $399.00 by $1.06 (the PA sales tax rate). The total price is $422.94.

  3. Fulton Bank Loans • I have chosen to take a loan out from the local Fulton Bank • Fulton Bank’s interest rate for personal loans is 13.24%

  4. Do I have any money to Start with? • YES! I have $100 saved up that I can use as my down payment. • Now, I will only need a $322.94 loan from Fulton Bank!

  5. Monthly Loan Payments • How much can I afford to pay the bank each month? I teach a few dance classes at my dance studio and I earn a total of $80 per month. Assuming that my parents continue to pay for most of my necessities (food, power, clothing), I am willing to pay the bank $50 per month until the loan is paid off.

  6. The Completed Question Molly takes out a loan from Fulton Bank to purchase a $422.94 ipod touch (including tax). Molly pays a down payment of $100 and she decides that she is able to pay the bank $50 per month until the loan is paid off. How long will it take Molly to pay off her loan if the interest rate at Fulton Bank is 13.24 percent?

  7. Sources • "Ipod Touch". The Apple Store. 3 January 2008 <http://store.apple.com/us/browse/home/shop_ipod/family/ipod_touch?intcmp=AIC-WWW-NAUS-BUYNOW-HEAD-IPODTOUCH-080910>. • "Personal Loans". Fulton Bank. 3 January 2008 <http://www.fultonbank.com/viewpage.asp?n=80>.

More Related