Part I-A:

1. How much money is deposited? 5,942.70

2. What is the total amount of interest is earned? 57.30
3. What percent of the amount deposited is the interest earned? =57.30/5942.70
=.0096420818819728 = .9642%
4. How does the percent in #3 above compare to the APR? It is just slightly less than
the APR. This is because the amount of interest you earn is not the same every
month, because you earn interest on interest.

Part I-B
1. How much money is deposited? $48,914.68
2. What is the total amount of interest is earned? $1,085.32
3. What percent of the amount deposited is the interest earned?
=1085.32/48,914.68 =.022118802208 = 2.2119%
4. How does the percent in #3 above compare to the APR? 2.2 is just higher than
1.5. This is expected because the amount of interest you earn is not the same every
month, because you earn interest on interest.
5. How do the answers in #4 Part I-A in #4 Part I-A compare? In in #4 Part I-A they
earn less than the APR in #4 Part I-A they earned more than the APR this was
expected because the term is longer and at the end they were earning more
interest on interest which yielded a higher amount of interest earned.

Part II-A
1. What is the total amount of principle paid for the sixty payments? $34,000.00
2. What is the total amount of interest paid for the sixty payments? $1,980.18
3. What is the total amount paid for the sixty payments? $35,980.18
4. The total interest is what percent of the amount of the loan? 1980.18/34,000.00=
0.0582405882 = 5.8241%

Part II-B
1. What is the total amount of principle paid for the 360 payments? $200,000.00
2. What is the total amount of interest paid for the360 payments? $75,217.19
3. What is the total amount paid for the 360 payments? $275,217.19

4. The total interest is what percent of the amount of the loan?

75217.19/200,000.00 = 0.376085 = 37.6085%
5. How does the total percent of interest paid for the truck loan compare to the
total percent of interest paid for the mortgage? The percent of interest paid for a 30
year mortgage is a lot higher than a 2 year truck loan. Because youre paying
interest on interest for a longer period of time.

Part III- Reflection

This project has taught us that money today is more valuable then potential
money in the future. This is very good knowledge to have. If I apply this principle to
my credit cards and pay more than just the minimum due it would save me interest
on interest and would help me get out of debt faster.
By changing the parameters on a savings account to adding more years or
more payments per year you earn more interest. So getting a savings account and
putting in the same initial deposit if you can find one that compounds continuously
instead of monthly you would increase the interest the bank pays you.
this was a fun project and by [playing around with the parameters and
changing some formulas we can use this excel program to see how fast we can pay
off a credit card, or see how many more years it would take to save 1 million dollars
in a saving account that yields 1%. the possibilities of what this program can figure
out are endless.