WebQuest
Purchasing a Car - An Investigation
Royce will need to borrow an additional $5,000 to increase his car buying budget to $8,000. The loan term is 3 years. To do this Royce will need to get a loan.
In the report you must compare TWO different loans. A table of comparison should be included with the following information
- The name of the loan and lending institution
- What is the interest rate for this type of loan?
- Are there any monthly access fees or start up fees for the loan amount?
- Minimum monthly repayments for the loan AND over the 3 year time period how much interest will you pay?
You will then advise which loan would be the best and justify the reasons why you selected it.
Factors that must be taken into consideration when comparing loans:
Overall cost of the loan
Features of the loan - involve fees and penalties and the flexibility of these conditions such as being able to repay early if able to.
Deposit Sometimes a loan requires a certain contribution as a deposit because the full amount will not be lent
Security A cheaper interest rate may be given if an asset is given as a security to the lender in the event the borrower does not repay the loan.
Attachments
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Getting the best credit deal
Description: Smart Moneys tips and information on dealing with credit
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Comparison Website - Rate City
Description: Comparison website are a good way of comparing rates from several lenders. Just remember there are disadvantages to using comparison sites!
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