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Car Loan Decision Support - American University Washington DC

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Car Loan Decision Support - American University Washington DC Powered By Docstoc
					          Car Loan Application
    Decision Support System Example

                   Car Loan Data                     Loan Rates by Credit Rating
Car Price                               30,000    Credit Rating Annual Interest Rate
Down Payment                             2,000        AAA               3.9%
Loan Amount                             28,000         AA               4.1%
Loan Period in Years                         5          A               4.5%
Loan Period in Months                       60        BBB               5.2%
Credit Rating                           AA             BB               6.2%
Annual Interest Rate                     4.1%           B               8.5%
Monthly Interest Rate                    0.3%           C              12.2%
Monthly Payment Amount                  516.93
               Personal Income Data
Annual Income                           60,000
Monthly Income                           5,000
Mortgage or Rent                         1,500
Other Fixed Montly Obligations             800
Disposable Income                        2,700
                 Decision Analysis
Loan as a % of Disposable Income        19.1%
Maximum % allowed                       20.0%

         Decision                 Approve

              Payment Schedule
Month   Payment    Balance Interest   Principal
    1     516.93 28,000.00    95.67     421.26
    2     516.93 27,578.74    94.23     422.70
    3     516.93 27,156.04    92.78     424.14
    4     516.93 26,731.90    91.33     425.59
    5     516.93 26,306.30    89.88     427.05
    6     516.93 25,879.26    88.42     428.51
    7     516.93 25,450.75    86.96     429.97
    8     516.93 25,020.78    85.49     431.44
    9     516.93 24,589.34    84.01     432.91
   10     516.93 24,156.43    82.53     434.39
   11     516.93 23,722.03    81.05     435.88
   12     516.93 23,286.16    79.56     437.37
   13     516.93 22,848.79    78.07     438.86
   14     516.93 22,409.93    76.57     440.36
   15     516.93 21,969.57    75.06     441.86
   16     516.93 21,527.70    73.55     443.37
   17     516.93 21,084.33    72.04     444.89
   18     516.93 20,639.44    70.52     446.41
   19     516.93 20,193.03    68.99     447.93
   20     516.93 19,745.10    67.46     449.46
   21     516.93 19,295.63    65.93     451.00
   22     516.93 18,844.63    64.39     452.54
   23     516.93 18,392.09    62.84     454.09
   24     516.93 17,938.00    61.29     455.64
25   516.93   17,482.37   59.73   457.20
26   516.93   17,025.17   58.17   458.76
27   516.93   16,566.41   56.60   460.33
28   516.93   16,106.09   55.03   461.90
29   516.93   15,644.19   53.45   463.48
30   516.93   15,180.71   51.87   465.06
31   516.93   14,715.65   50.28   466.65
32   516.93   14,249.00   48.68   468.24
33   516.93   13,780.76   47.08   469.84
34   516.93   13,310.92   45.48   471.45
35   516.93   12,839.47   43.87   473.06
36   516.93   12,366.41   42.25   474.68
37   516.93   11,891.74   40.63   476.30
38   516.93   11,415.44   39.00   477.92
39   516.93   10,937.51   37.37   479.56
40   516.93   10,457.96   35.73   481.20
41   516.93    9,976.76   34.09   482.84
42   516.93    9,493.92   32.44   484.49
43   516.93    9,009.43   30.78   486.14
44   516.93    8,523.29   29.12   487.81
45   516.93    8,035.48   27.45   489.47
46   516.93    7,546.01   25.78   491.14
47   516.93    7,054.86   24.10   492.82
48   516.93    6,562.04   22.42   494.51
49   516.93    6,067.53   20.73   496.20
50   516.93    5,571.34   19.04   497.89
51   516.93    5,073.45   17.33   499.59
52   516.93    4,573.85   15.63   501.30
53   516.93    4,072.55   13.91   503.01
54   516.93    3,569.54   12.20   504.73
55   516.93    3,064.81   10.47   506.46
56   516.93    2,558.35    8.74   508.19
57   516.93    2,050.17    7.00   509.92
58   516.93    1,540.24    5.26   511.66
59   516.93    1,028.58    3.51   513.41
60   516.93      515.17    1.76   515.17

				
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