Borrowing Money VS Saving
You have found the car of your dreams. 94 Chevy S-10 Pick up!
The price is $3,500.
You have no money but the bank will be happy to give you a loan for 6 years at 9.9% interest.
How much is your payment (PMT function)?
When the loan is over how much money will you have given the bank?
How much did you pay in interest?
Create a Spreadsheet to answer the questions
Part 2:
Video with Audio - How Does Compound Interest
Now lets say instead of getting a loan for your car. You save your monthly payment in CP Federal’s Auto savings account. (1.24%)You are not going to get rich off the interest but you will get rich by not paying to borrow money.
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