This is a power point I use to teach about various terms related to Auto Loans. These terms are essential for completing the Auto Loans Project in my high school Consumer Education class.

1. Auto Loan Terms& Auto Loan Project Miss Opland Consumer Ed.

2. Objectives: Become familiar with several terms associated with auto loans. Apply auto loan formulas in real-life scenarios. Use the Internet to research automobiles, loans, and associated costs. Evaluate 3 different auto loans and make a wise consumer choice on 1 of them. Present project findings using Glogster.

3. Negotiated Price N na Down Payment D Trade-In Value V

4. Principal P Annual Percentage Rate R

5. Time Period T= number of years, n= number of months T= number of months ÷12 n= number of years ×12 Monthly Payment M

6. Total Loan Amount A Total Purchasing Cost C

7. Using the formulas… Example: In 2007, Miss Opland financed a new Toyota Prius. The negotiated price, with all fees and taxes included, was $24,921.24. The APR she was given was 5.75% and the term of the loan was 5 years. She made a $5000 down payment. She did not have a car to trade-in. How much is her monthly payment? What is her total loan amount? What is her total purchasing cost?

8. Number the rows of your chart (if you wish)! 1. Negotiated Price 2. Down Payment 3. Trade-In Value 4. Principal 5. Annual Percentage Rate 6. Time Period 7. Monthly Payment 8. Total Loan Amount 9. Total Purchasing Cost $24,921.24 First, write in the “givens”! Then, use the formulas to find the remaining amounts! $5,000 None! P= 24,921.24 – 5,000 – 0 = 19,921.24 5.75% n=5×12 =60 M≈382.81 (used online auto loan calculator!) A=382.81 ×60 =22,932.60 =27,932.60 C=5,000 + 0+22,932.60

9. Total Interest Paid To find the total interest paid calculate the total loan amount minus the principal! $22,932.60 – $19,921.24 = $3,011.36 This means, when I finish paying off my car, I will have paid $3,011.36 extra (assuming I don’t pay it off early)!

10. Auto Loans Project! – 50 points See handout provided in class (it is also on the weebly)!