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?  

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.)

For Jesse, I believe the best deal is B, it has a higher interest rate but overall it’s a way lower monthly payment than the other options.

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?  

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.)

For Mariah, I believe the best deal would be C. Even though there’s a higher monthly payment, there’s a lower interest rate. It’s also paid off in a shorter amount of time.