Question

Use the Car Loan Calculator to do the following: (Click HERE for a calculator)

1. The car you would like cost $20,000. Enter $20,000 in the Auto Loan amount field.

2. Use a 7% interest rate for 5 years. Now, try an 11% interest rate for 5 years. What is the difference in payments?

Now, use a Mortgage Calculator to do the following: (Click HERE for a calculator)

3. Find out your monthly payment for a house worth $200,000 at 8% interest for 30 years.

4. Find the total amount of interest being paid over the life of the loan.

How to find Total Amount of Interest Paid: Scroll down a little and click on the button "Show/ Recalculate Amortization Table", scroll down a little more to find "Total Interest", scroll all the way down to the bottom to see the "Total amount of interest" paid.

5. Change the interest rate to 5%. What is the new payment? What is the total interest paid?

6. Change the years to 15 and keep 5%. What are the payment and total interest paid?

7. What is the difference in interest paid from questions 5 and 6?

Answers

There are no human answers yet.
Answered by GPT-4o mini
To perform the calculations as requested using hypothetical car loan and mortgage calculators, I'll provide the expected outcomes and calculations based on standard loan formulas. Please note that I don't have access to external links or calculators, so here are the general results you can expect with the provided inputs:

### Car Loan Calculator:

1. **Loan Amount**: $20,000

2. **For 7% Interest Rate for 5 Years**:
- Monthly Payment: Approximately $396.02

3. **For 11% Interest Rate for 5 Years**:
- Monthly Payment: Approximately $439.90

4. **Difference in Payments**:
- Difference: $439.90 - $396.02 = $43.88

### Mortgage Calculator:

3. **House Worth**: $200,000
- **Interest Rate**: 8% for 30 years
- Monthly Payment: Approximately $1,467.53

4. **Total Amount of Interest Paid**:
- Total Interest: Approximately $ 219,008 (this will vary slightly based on the calculator specifics).

5. **Change Interest Rate to 5%**:
- Monthly Payment: Approximately $1,073.64
- Total Interest Paid: Approximately $ 186,512.

6. **Change to 15 Years at 5%**:
- Monthly Payment: Approximately $1,582.34
- Total Interest Paid: Approximately $ 85,189.

7. **Difference in Interest Paid from Questions 5 and 6**:
- Difference: $186,512 - $85,189 = $101,323.

### Summary of Calculated Data:
- **Car Loan Payments**:
- 7%: $396.02
- 11%: $439.90
- Difference: $43.88

- **Mortgage Payments and Interest**:
- 30 years at 8%:
- Payment: $1,467.53
- Interest: $219,008
- 30 years at 5%:
- Payment: $1,073.64
- Interest: $186,512
- 15 years at 5%:
- Payment: $1,582.34
- Interest: $85,189
- Difference in Interest between 30 years at 5% and 15 years at 5%: $101,323

This information should help you with your calculations and comparisons! Please use actual calculators to verify the numbers for accuracy.

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