

Car Loans
Living on Your Own  Let's Calculate the Cost!
1) Use Yahoo Autosmart
(http://autos.yahoo.com/) and choose three cars to research:
For all three cars, assume you will take out a threeyear loan. Find the information to fill in the table below.
Use the following information to help you.
Interest rate = 7%
Loan term (time) = 3 years (36 months)
P= principal (price of car)
R= interest rate
T= time
3 Year Loan 
Car Model 
Price(P) 
Interest (I) (I=PRT)  Use time in years 
Loan Total (LT) (LT=P+I) 
Monthly Payment (LT/time in months) 
Car A 





Car B 





 Car C 





2) Now repeat #1, using 4 years as the loan term.
4 Year Loan 
Car model 
Price (P) 
Interest (I=PRT) 
Loan Total (LT=P+I) 
Monthly Payment (LT/time) 
Car A 





Car B 





 Car C 





3) Now repeat #1, using 5 years as the loan term.
5 Year Loan 
Car Model 
Price(P) 
Interest (I=PRT) 
Loan Total (LT=P+I) 
Monthly Payment (LT/time) 
Car A 





Car B 





 Car C 





*Please note: All car owners are also responsible for paying for gasoline, car maintenance, and auto insurance.
4) Using your three information tables, answer the following questions:
What is the monthly payment for car A for 3 years? 4 years? 5 years?
What is the difference in the Loan Total for car A and car B for 3 years?
For car B, what is the difference in the Loan Total for a 3year loan and a 5year loan?
What is the difference in Interest for car C for a 3year loan and a 5year loan?
What is the advantage of a 3year loan compared to a 5year loan? What is the disadvantage?




