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Course Library · Lesson 6 of 6
Money · Guided lesson

Write a borrowing-or-wait decision

About 13 minutes · 3 reading + 10 practice and checks
Time includes reading, practice, and questions. Extra videos or further study are optional.
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.
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Before you begin

The idea in everyday life

This is an original fictional practice case. No account, payment, personal record or outside participation is required. Need $1,200 in 4 months. Existing savings $400; can save $200/month. Loan would deliver $1,200 and require total $1,320.

The idea

A borrowing comparison is complete with a supported alternative, affordability check and unresolved-term list; rejection is a valid result.

Follow along

Write a borrowing-or-wait decision — worked practice

A borrowing comparison is complete with a supported alternative, affordability check and unresolved-term list; rejection is a valid result.

Use paper or a local table; label all amounts as fictional USD unless the case names another unit. Need $1,200 in 4 months. Existing savings $400; can save $200/month. Loan would deliver $1,200 and require total $1,320.

Borrow-or-wait comparison

Paste at A1.

AInput or recordBSupplied value
Need USD1200
Months before need4
Savings now USD400
Monthly contribution USD200
Loan delivered proceeds USD1200
Loan total scheduled payment USD1320

Copy as plain text
  1. 1. Step 1: Calculate savings by the use date

    Calculate savings by the use date.

    You should see: 400+4×200=$1,200.

    A borrowing comparison is complete with a supported alternative, affordability check and unresolved-term list; rejection is a valid result.

  2. 2. Step 2: Check whether waiting meets the stated deadline

    Check whether waiting meets the stated deadline.

    You should see: It meets the 4-month need with no borrowing.

    Keep this intermediate result so the final decision can be checked.

  3. 3. Step 3: Compare loan cost above proceeds

    Compare loan cost above proceeds.

    You should see: $120 under the supplied complete-payment terms.

    Keep this intermediate result so the final decision can be checked.

  4. 4. Step 4: Write the supported choice and review trigger

    Write the supported choice and review trigger.

    You should see: Wait/save under these facts; revise if deadline or affordable saving changes, without treating the exercise as loan approval.

    Keep this intermediate result so the final decision can be checked.

Now change one thing

Monthly saving falls to $150. Amount available by month 4?

Your work

What to finish

A borrowing-or-wait decision brief with a savings path, cost and review trigger.

Common mistake

Watch for this

Calling a lower-cost loan suitable when its payment cannot be afforded.

How can I tell I understand it?

Compare borrowing with a feasible saving alternative by the same need date on a new supplied case, with a visible intermediate check and no unsupported real-world promise.

Try 3 questions

Quick knowledge check

Answer all 3 questions. Get at least 2 right and the lesson completes automatically.

Not yet passed

You’ll get an explanation for each answer. Signed in? Your results save to your account.

1$300 saved plus 5 months at $100: funds by the deadline?
2Saving meets the same deadline and avoids stated loan costs. What is a supported conclusion?
3Which uncertainty must remain visible?
0 of 3 answeredApply the lesson to a short question, then review the explanation.
6
Finish this lesson

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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Tools, templates, and lesson sources

Tools and templates

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Sources and further reading

Explore the references behind this lesson.

CFPB — Do personal installment loans have fees?
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.

CFPB — What is the difference between a loan interest rate and the APR?
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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