1. Benefits and Costs

 b. Explain the Difference in Cost between Cash and Credit Purchases (continued)

José is buying many things on credit—his education, clothes, a car, a house, he knows what the basic price is for each purchase. But, he wonders what these purchases are really costing him over the period of each loan. So he created this table:

Items	Cash Price	Monthly Principal and Interest	Calculation	Total Cost
Graduate student Loan $23,000, 8.25% APR, 10 years	$23,000	$282	120 x $282	$33,840
Cothes with department store card, $1,000, 22% APR, 1 year	$1,000	$94	12 x $94	$1,128
Car loan, $15,000, 9% APR, 5 years	$15,000	$311	60 x $311	$18,660
Home mortgage, $150,000, 8.5% APR, 30 years	$150,000	$1,153	360 x $1,153	$415,080
Home mortgage, $150,000, 7.5% APR, 30 years	$150,000	$1,049	360 x $1,049	$377,640
Home mortgage, $150,000, 7% APR, 15 years	$150,000	$1,348	180 x $1,349	$242,820