Auto loans are amortized installment loans, so once the terms of your loan are set, your payments should stay the same month after month. Assume you are taking a $20,000 car loan, for a term of 48 months, with an interest rate of 3%. Use this calculator to answer the following questions. 1.What is your monthly payment?

2.Experiment with the values in the calculator to complete the chart. Use up or down arrows to indicate how the Action impacts the Monthly Payment and Total Cost of the Car Loan.

Action
Monthly Payment
Total Cost
of the Car Loan
Increase the amount of down payment

Secure a lower APR

Extend the term of your loan

Pay more than the minimum monthly bill