Assignment 1: Discussion—Car Loans and Insurance

The most common methods for financing automobiles are through car loans or car leases. Car loans are personal loans provided by banks and credit unions and can be repaid over a period of years. However, with a car lease, a person never owns the car. The bank or credit union selected purchases the car and rents it to you for a fixed period. Once the fixed period of the lease expires, the financial institution takes back the car and sells it. In this assignment, you will compare the differences between car loans and car leases.

A car loan is one of the most significant investments made by a typical American family. An alternative to the traditional auto loan is the auto lease.

Using the readings for this module, the Argosy University online library resources, and the Internet, respond to the following:

• Examine the differences between a car loan and a car lease. Consider the following factors:
  • Advantages and disadvantages of both leasing a vehicle and purchasing a vehicle
  • The process you will personally follow in making a decision on taking a car loan or leasing your next car
• Explain how leasing versus financing a new automobile changes your insurance options/requirements for the automobile. Consider that auto insurance requirements differ by state.
• Describe the requirements specific to your state and whether insurance requirements differ on a financed purchase over a lease.
• Identify other variables that influence one’s insurance premium.
• Describe the actions one can take to ensure that auto insurance premiums are not unnecessarily high.

Write your initial response in 200–300 words. Apply APA standards to citation of sources.

By Saturday, May 16, 2015, post your response to the appropriate Discussion Area. Through Wednesday, May 20, 2015, review and comment on at least two peers’ responses. Consider the following when posting your responses:

• Different reasons for selecting leasing over financing an automobile
• Differences in insurance rules in other states
• Reasons why the rules differ across states

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Assignment 2: LASA: Finding Your Best Bank

For this assignment, you will take on the role of a personal financial advisor and create a personal financial portfolio.

Step 1: Using the large National Bank, the Regional/Local Bank, and the Credit Union you identified in the Module 1 Assignment 2, compare and contrast each institution by completing the Module 3 Assignment 2 template.

Step 2: Once you have completed the Module 3 Assignment 2  template, create a financial portfolio. This financial portfolio is a professional one. Please follow the following instructions when preparing it:

• Identify, describe, and explain the financial institution that would be the best fit for you. Be sure to justify your selection by referencing the information collected in your completed template.
• Identify, describe, and explain which type of saving account would best fit your current financial position.  Be sure to justify your selection by referencing the information collected in your completed template.
• Analyze the following situation and answer the questions below:

After choosing  a savings account with a 3% interest rate, you decide to invest $5,000 into the savings account.

• Using the future value calculation, determine at an interest rate of 3%, what would be your total balance available at the end of five years if you leave the $5,000 untouched. Show your calculations, as well as, your answer in your portfolio.
• How will this interest earned be reported on your federal income tax returns?

• Be sure to include the following in your financial portfolio:

• Contact information for the financial institutions
•  Show all steps of your future value calculations in Excel or Word format.
• Support your statements with examples and at least three scholarly references.

Your financial portfolio should be presented as a 3–4-page paper in Word format.  Be sure to also include the template you completed for step 1 of the assignment. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M3_A2.doc.

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