Module 5.6: Graded Activity: Auto Loans Molly is celebrating her exciting new career and wants to upgrade her junky old car


Module 5.6: Graded Activity: Auto Loans Molly is celebrating her exciting new career and wants to upgrade her junky old car for a shiny new Jeep Patriot. She heads to Jeep’s website and sees the following financing deals: Molly has a $2500 down payment saved for this purchase, and the dealer’s $1500 Cash Allowance will come straight off her total. How much loan does Molly need? How much will Molly’s monthly payment be? How much total interest will Molly pay using this plan? When Molly adds all her payments, how much will the car cost her? Oh, boy! Look at that monthly payment from Question 2 above! Molly cannot afford the monthly payment using the 0% financing. She opens up Bank rate’s Loan Calculator to see how much she would pay with the other financing option. Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash. Allowance straight off her total. How much loan does Molly need? Using the Loan Calculator and the 1.9% APR offer, how much will Molly’s monthly payment be? How much total interest will Molly pay using this plan? When Molly adds all her payments, how much will the car cost her using this plan? Excited to buy her dream car, Molly rushes into her local Jeep dealership. Molly picks out a car, sits down at the financing desk, and hears the following: “Well, we ran your credit history. You have got a thin file just a year’s worth of student loan payments. The deal you saw was for ‘well qualified buyers.’ The best deal we can offer you is 6.6% for 60 months. A little more bad news the cash allowance is also based on credit history, so you do not qualify for $500. That said, you are excited about a Jeep, and I want to see you driving one, so I can do $400 for you!”9- Molly still has a $2500 down payment. How much loan does Molly need? How much will Molly’s monthly payment be using the Bank rate calculator? How much total interest will Molly pay using this plan? When Molly adds all of her payments, how much will the car cost her?