Learn to recognize the impact interest rates have on the length of loans.
- Let's do a role-playing exercise.…I'll be the car salesperson,…you be the car buyer.…Ah, you want to buy a car that costs $30,000 dollars.…No, no, no, there's your first mistake, my friend.…Let's not think about the price of the car,…let's think about those monthly payments.…The monthly payments you ask?…Yes, let me show you this nice car right over here.…With special dealer financing,…I can put you in this car…for just $584.34 cents per month.…No money down; you have one month until…you need to make your first payment,…you just sign right here,…and drive away in this beauty.…
Just $584.34 cents per month.…Now you're thinking, yeah, well,…that's about what I was thinking of paying per month.…The car looks a bit more expensive…than what I planned to buy, but, okay, I'll sign.…Now, I have illustrated an extreme example…of a shady salesperson, me,…and a gullible buyer, you.…A reputable salesperson is going…to show the car buyer all of the documents…that would make clear that the car buyer…was really buying a $40,000 dollar car,…
In this course, join accounting professors Jim and Kay Stice as they help you discover how to leverage the power of numbers to approach businesses problems and make everyday decisions. They explore the power of ratios and percentages, how to monitor and evaluate your budget, how to forecast the timing and amount of a business loan, and much more.
- The power of ratios and percentages
- Growth rates, rule of 72, and extrapolation
- Financial ratios to determine unpaid inventory
- How to convert to percentages
- Variance and the concept of risk
- Numerical planning and everyday decisions
- Creating, monitoring, and evaluating your budget
- Forecasting the timing and amount of a business loan
- The power of compound interest
- Loan payments and interest rates