Accounting and Finance Foundations

Unit 10

Accounting and Finance Foundations Unit 10: Credit 779

Credit

Chapter 22

Student Assignment

Credit Assignment

You need a new vehicle to make deliveries for your small business. Find three good used cars that cost

less than $15,000 each and are within 30 miles of home. Fill out the chart below. (Autotrader.com is a good

source of information about autos for sale in your area.)

Year

Make

Model

Price

Mileage

Owner’s/Dealer’s

Name

City

What web site did you use?

Using Bankrate.com, determine which three banks in your area have the lowest interest rates for a

48-month used auto loan, and fill out the chart below.

Name of Institution 48-Month Auto Loan Rate

Choose one of the three automobiles in the first chart and one of the banks in the second chart. Assume

that you have $1,000 available for a down payment. While still at Bankrate.com, go to the Calculators tab,

and use the auto loan calculator to fill out the following information:

Number of Payments/

Months

Auto Loan Interest

Rate

Payoff Date

Total Amount Paid

36

48

60

Assume that you chose a 48-month loan. Now, go to the “extra payments” section of the calculator, and

add $10 to your monthly auto loan payment.

a. What will your new payoff date be?

b. What will be your total amount paid?

Lesson 22.10