Hot Wheels By Riley Corcoran

Salary: $120,000

Salary Budget (Per year)

Housing: $42,000
Taxes: $30,000
Transportation: $12,000 + $6,000
Food: $18,000
Savings: $6,000
Medical: $3,600
Misc: $2,400

What Can I afford?

3 Year Loan: $33,998.68
4 Year Loan: $44,509.02
5 Year Loan: $54, 633.11

Monthly payment must be under: $1,000

2013 Porsche Cayenne Financing

3 Year Loan: $1470.59 Monthly Payment
4 Year Loan: $1123.32 Monthly Payment
**5 Year Loan: $915.16 Monthly Payment**

Initial cost of car: $49,998
Total spent on car over 5 year loan period: $49,998.04

Extra Problem!

Mrs. O’Connell wants to buy a new car that costs $24516.00. The car dealership is offering 0% interest for a 5 year loan. They also offer a $4000 rebate instead of 0% financing with 3.75% interest. Help Mrs. O’Connell determine which is the better deal? Show work and justify your answer.


Better Deal: Rebate!


Total paid:

0% Financing: $24,516

Rebate: $22,246.20