Compare term and total repayment
See this course’s project requirements
A checked amortization schedule and loan-offer comparison separating cash received, interest, fees, total cost and early-payment rules.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- A loan-proceeds comparison with a funding-gap calculation and disclosure questions.
- A checked one-period payment allocation and principal roll-forward.
- A four-period amortization table with final payoff and total-interest checks.
- A term/cost/affordability scorecard for comparable loan offers.
- An extra-payment scenario with principal application and prepayment questions.
- A borrowing-or-wait decision brief with a savings path, cost and review trigger.
Review and revise
Use these criteria to check your work and choose what to improve.
- All supplied records reconcile and the decision uses the named case rules.
- Calculations show units, intermediate values and a second check.
- Changed-input practice revises the affected result and identifies uncertainty.
- The final project combines six lesson records, separates fictional assumptions from current rules, and states a supported next step.
Want more background?
The idea in everyday life
This is an original fictional practice case. No account, payment, personal record or outside participation is required. Same $1,200 delivered proceeds. Offer A: 12 payments of $110; B: 24 payments of $60. Both have no extra charges in this comparison.
Lower periodic payments can come from a longer term rather than lower total cost.
Compare term and total repayment — worked practice
Lower periodic payments can come from a longer term rather than lower total cost.
Use paper or a local table; label all amounts as fictional USD unless the case names another unit. Same $1,200 delivered proceeds. Offer A: 12 payments of $110; B: 24 payments of $60. Both have no extra charges in this comparison.
Comparable loan cash flows
Paste at A1.
| AOffer | BDelivered proceeds USD | CNumber of payments | DPayment USD | EAdditional charges USD |
|---|---|---|---|---|
| A | 1200 | 12 | 110 | 0 |
| B | 1200 | 24 | 60 | 0 |
Copy as plain text
1. Step 1: Confirm proceeds are the same
Confirm proceeds are the same.
You should see: Both deliver $1,200.
Lower periodic payments can come from a longer term rather than lower total cost.
2. Step 2: Compute total payments
Compute total payments.
You should see: A 12×110=$1,320; B 24×60=$1,440.
Keep this intermediate result so the final decision can be checked.
3. Step 3: Compute cost above proceeds
Compute cost above proceeds.
You should see: A $120; B $240.
Keep this intermediate result so the final decision can be checked.
4. Step 4: Compare cost and affordability separately
Compare cost and affordability separately.
You should see: B lowers each payment $50 but costs $120 more over its term; a cheaper total may still be unaffordable monthly.
Keep this intermediate result so the final decision can be checked.
What to finish
A term/cost/affordability scorecard for comparable loan offers.
Watch for this
Ranking a loan as cheapest solely because it has the smallest monthly payment.
How can I tell I understand it?
Compare complete loan payment totals and monthly feasibility for equal proceeds on a new supplied case, with a visible intermediate check and no unsupported real-world promise.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Pass the check. We’ll save the progress.
Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Sources and further reading
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Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
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