1. Consider a $25,000 car loan at a 3.00% APR and a 48-month term. Over 4 years of payments, you'll pay $1,561 in total interest on the loan. If you extend that same loan to a 60-month term
(or 5 years), you'll lower your monthly payment by $104—but you'll increase the total interest
you'll pay from $1,561 to $1,953. Which loan is better and why?
2. Your sibling came home from college and asked your advice about how to improve their credit
score. First they told you that they have an auto loan that they try and pay every month on time
but only make it 80%. Next they have 3 credit cards that they got in college. They had been
carrying a balance but had since been paid off and are now paid off every month. They have
$20,000 in student loan debt that they just started paying on and they are currently working full
time. What is your best advice to improve their credit score
3. Your friend recently came up to you and asked your advice about opening a credit card. Using
the information gained in this class, give them advice. First, give them the positives and
negatives of getting one a credit card and then give them your advice on the following
information: Your friend has a job working 20 hours a week. They already have a debit card.
They will be turning 18 next month and want to move out of their parents house as soon as
possible.