Updated car laon before edits

Author: mGalarnyk

.DS_Store

@@ -198,13 +198,13 @@
     "# 7.5% state sales tax rate on the purchase of all vehicles\n",
     "\n",
     "# Annual percentage rate\n",
-    "APR = .0359\n",
+    "APR = .0702\n",
     "\n",
     "# periodic interest rate = APR/number of periods per year\n",
     "R = APR / 12\n",
     "\n",
     "# Total number of interest periods (number of months)\n",
-    "n = 72"
+    "n = 60"
    ]
   },
   {
@@ -230,7 +230,7 @@
      "name": "stdout",
      "output_type": "stream",
      "text": [
-      "Monthly payment is: 517.08\n"
+      "Monthly payment is: 662.64\n"
      ]
     }
    ],
@@ -242,27 +242,27 @@
    "cell_type": "markdown",
    "metadata": {},
    "source": [
-    "## How your Monthly Payment (Equated Monthly Installment) is Calculated"
+    "## Calculating a Monthly Payment (Simplified)"
    ]
   },
   {
    "cell_type": "code",
-   "execution_count": 69,
+   "execution_count": 5,
    "metadata": {
     "collapsed": true
    },
    "outputs": [],
    "source": [
     "# California sales tax 7.5%\n",
-    "Principal = 31115 * (1.075)\n",
+    "P = 31115 * (1.075)\n",
     "\n",
     "r = 0.0702 / 12\n",
     "n = 60"
    ]
   },
   {
    "cell_type": "code",
-   "execution_count": 70,
+   "execution_count": 6,
    "metadata": {
     "collapsed": false
    },
@@ -273,7 +273,55 @@
        "662.638532377825"
       ]
      },
-     "execution_count": 70,
+     "execution_count": 6,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "numerator = (r *((1 + r)**(n)) )\n",
+    "denominator = ((1 + r)**(n)) - 1\n",
+    "\n",
+    "emi = P * (numerator / denominator)\n",
+    "emi"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {},
+   "source": [
+    "## Calculating a Monthly Payment (with some fees included)"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 7,
+   "metadata": {
+    "collapsed": true
+   },
+   "outputs": [],
+   "source": [
+    "# Price + Tax + Emissions + Registration + Plate + Documentation\n",
+    "P = 31115 + (32615 * 0.0975) + 50 + 200 + 65 + 80\n",
+    "\n",
+    "r = 0.0702 / 12\n",
+    "n = 60"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 8,
+   "metadata": {
+    "collapsed": false
+   },
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "687.2302176619154"
+      ]
+     },
+     "execution_count": 8,
      "metadata": {},
      "output_type": "execute_result"
     }
@@ -286,6 +334,64 @@
     "emi"
    ]
   },
+  {
+   "cell_type": "code",
+   "execution_count": 9,
+   "metadata": {
+    "collapsed": false
+   },
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "('The difference between the two is: ', 24.590000000000032)"
+      ]
+     },
+     "execution_count": 9,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "'The difference between the two is: ', 687.23 - 662.64"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {
+    "collapsed": false
+   },
+   "source": [
+    "## How Interest Rates Affects Monthly Payments"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {
+    "collapsed": true
+   },
+   "outputs": [],
+   "source": []
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {
+    "collapsed": true
+   },
+   "outputs": [],
+   "source": []
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {
+    "collapsed": true
+   },
+   "outputs": [],
+   "source": []
+  },
   {
    "cell_type": "markdown",
    "metadata": {},

Finance/.ipynb_checkpoints/car_loans-checkpoint.ipynb

@@ -247,7 +247,7 @@
   },
   {
    "cell_type": "code",
-   "execution_count": 9,
+   "execution_count": 5,
    "metadata": {
     "collapsed": true
    },
@@ -262,7 +262,7 @@
   },
   {
    "cell_type": "code",
-   "execution_count": 10,
+   "execution_count": 6,
    "metadata": {
     "collapsed": false
    },
@@ -273,7 +273,7 @@
        "662.638532377825"
       ]
      },
-     "execution_count": 10,
+     "execution_count": 6,
      "metadata": {},
      "output_type": "execute_result"
     }
@@ -295,7 +295,7 @@
   },
   {
    "cell_type": "code",
-   "execution_count": 1,
+   "execution_count": 14,
    "metadata": {
     "collapsed": true
    },
@@ -310,7 +310,7 @@
   },
   {
    "cell_type": "code",
-   "execution_count": 2,
+   "execution_count": 15,
    "metadata": {
     "collapsed": false
    },
@@ -321,7 +321,7 @@
        "687.2302176619154"
       ]
      },
-     "execution_count": 2,
+     "execution_count": 15,
      "metadata": {},
      "output_type": "execute_result"
     }
@@ -336,35 +336,88 @@
   },
   {
    "cell_type": "code",
-   "execution_count": null,
+   "execution_count": 16,
    "metadata": {
-    "collapsed": true
+    "collapsed": false
    },
-   "outputs": [],
-   "source": []
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "('The difference between the two is: ', 24.590000000000032)"
+      ]
+     },
+     "execution_count": 16,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "'The difference between the two is: ', 687.23 - 662.64"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "metadata": {
+    "collapsed": false
+   },
+   "source": [
+    "## How Interest Rates Affects Monthly Payments"
+   ]
   },
   {
    "cell_type": "code",
-   "execution_count": 19,
+   "execution_count": 17,
    "metadata": {
     "collapsed": false
    },
    "outputs": [
     {
      "data": {
       "text/plain": [
-       "24.590000000000032"
+       "0.01884"
       ]
      },
-     "execution_count": 19,
+     "execution_count": 17,
      "metadata": {},
      "output_type": "execute_result"
     }
    ],
    "source": [
-    "687.23 - 662.64"
+    "(1884/ 5) / 20000"
    ]
   },
+  {
+   "cell_type": "code",
+   "execution_count": 18,
+   "metadata": {
+    "collapsed": false
+   },
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "0.23772763121156398"
+      ]
+     },
+     "execution_count": 18,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "(12 * 687.2302176619154) / (P)"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {
+    "collapsed": true
+   },
+   "outputs": [],
+   "source": []
+  },
   {
    "cell_type": "markdown",
    "metadata": {},