Answer & Explanation:Extra Credit Project for Mid-Term Exam Directions(Note: There will not be extra credit for the Final Exam)Amortization Schedules AssignmentPost the schedule, other information below, and your opinion in this Extra Credit Discussion area for up to 10 points extra credit that I will add to your Mid-Term ExamNote: An amortization schedule is used when you repay a loan (plus interest) by making equal payments. 1) Go to an on-line car-pricing site; three possibilities are:www.edmunds.com and www.kbb.com and www.autotrader.comChoose two cars to find the price on; these may be used or new, a dream car, or a practical car. Use a web-site to develop a loan amortization schedule for each car. One possibility iswww.myamortizationchart.com will organize your chart by either months or years. londonessays.com will organize your chart by months. londonessays.com will organize your chart by years. Use values close to 4 years and 5.5% interest to help you get started with using the amortization schedule.2) Copy and paste (control c and control v works) ONE of the whole amortization schedules to post in the Extra Credit Discussion area (you will probably be able to see both a monthly amortization, and a yearly amortization; the yearly one will be shorter and easier to post). For BOTH cars, also post 1) the car information: make, model, and 2) this loan summary information: Interest rate, Number of payments, Monthly payment, Total principal paid, Total interest paid,
and Total paid.3) Write some type of short opinion decision based on your research about which car you might decide to purchase (or not) and why or why not.4) Optional: Just for your personal interest, you may want to visit this site below to compare leasing vs. buying a car.londonessays.com vehicle amortization EXAMPLE below: Yearly Amortization SchedulePaymentsYearly TotalPrincipal PaidInterest PaidBalanceYear 1 (1-12)$10,771.00$8,869.65$1,901.35$29,725.35Year 2 (13-24)$10,771.00$9,369.97$1,401.03$20,355.38Year 3 (25-36)$10,771.00$9,898.51$872.49$10,456.86Year 4 (37-48)$10,771.00$10,456.86$314.14$0.00Totals$43,084.02$38,595.00$4,489.02 The amortization schedule is for the first vehicle I chose, which is a 2014 Honda OdysseyCar 1 Car22014 Honda Odyssey 2013 Honda OdysseyNew, $38,595 including tax, $0 Down Used, $32,386 including tax, $0 down5.5% interest 5.5% interest48 monthly payments 48 monthly payments$898 per month $753 per monthTotal principal paid $38595 Total principal paid $32,386Total interest paid $4,489.02 Total interest paid $3,766.84Total paid $43,084.02 Total paid $36,152.84I decided to do the same vehicle, but a new model and a used, to see if buying a new was going to make much of a difference. At first, just looking at the monthly payments, the difference wasnt that much. But after looking at the total paid, I would save about $7000 dollars purchasing the used vehicle. If the used vehicle had low mileage I would definitely purchase that one.