MM - Buying a Losing Investment Lesson

Buying a Losing Investment

Adapted from Course materials (VI.D Student Activity Sheet 10) for AMDM developed under the leadership of the Charles A. Dana Center, in collaboration with the Texas Association of Supervisors of Mathematics and with funding from Greater Texas Foundation.

In this lesson, you will continue using the TVM calculators to explore several car buying options.

• Why is buying a car a losing investment? At the end of the loan, you own an asset with some value, but not as much as what you finance.

The total cost of a vehicle is the selling price plus interest minus the residual value of the car.

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