Today was a double class day, and in the morning we went over the spreadsheet on Jess' truck problem., and how to calculate the Present Value of a lease loan.
After that we went over last night's homework and used the spreadsheet as well to solve that problem. If you haven't noticed, there is a link underneath May 7's slides for you to use the spreadsheet at home.
At the beginning of the afternoon class we continued by comparing what happens to the monthly payments and total interest when you change the percentages, and when you change the amount of payments (length of loan). We found out that changing the percentages for the same loan does not significantly affect the monthly payments, or the total interest paid. However, if you change the length of the loan, you will get much bigger changes:
- On a shorter loan, i.e. 3 years, your monthly payments will be higher, but the total interest paid will be smaller.
- On a longer loan, i.e. 5 years, your monthly payments will be smaller but you will end up paying a lot more interest in the long run.
We were then left with Ted's truck to work on class, and whatever you did not finish in class is tonight's homework. Good luck to all!
And for tomorrow, Melissa can have the honors of scribing.
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