# Hot Wheels Project

## Salary

I was given the salary \$100,000 and I calculated the yearly and monthly budget that I could afford with this amount.

Taxes: \$25,000/ \$2,083.34
Housing: \$35,000/ \$2,916.17
Food: \$15,000/ \$1,250
Savings: \$5,000/ \$416.67
Transportation-
Payment: \$10,000/ \$833.34
Other: \$5,000/ \$416.67
Medical: \$3,000/ \$250
Miscellaneous: \$2,000/ \$166.67

## Car Payments

After finding out how much money I had to spend on transportation, I was able to calculate what I could afford for my yearly and monthly car payments. Using this budget I calculated how much I was able to afford in 3, 4, and 5 years.

Yearly= \$15,000
Monthly= \$1,250

3 Years- \$42,498
4 Years- \$55,636.27
5 Years- \$68,291.39

## Car I Chose

The car that I chose is a 2011 Jeep Grand Cherokee Laredo 4D Sport Utility that costs \$24,998

Citation: Find a Car. (n.d.). Retrieved April 28, 2015, from http://www.carmax.com/enus/car-search/new-cars.html

## Minimum Payments

Using the cost of the car that I chose, I was able to calculate the minimum monthly payments for this car in 3, 4, and 5 years. After figuring out these amounts I can chose the best deal offered.

3 Years- \$735.28
4 Years- \$561.63
5 Years- \$457.59

I decided to go with the 3 Year plan, because I will end up spending a total of \$26,470.08. I think that this is the best deal because if I was to choose the 4 Year plan and 5 Year plans, then I would end up spending a total of \$26,958.24 and \$27,445.50. Since the original value of the car is \$24,998, I chose the plan that would give me the best value of the price of the car.

## Bonus Question

The better deal is the \$4,000 rebate with the 3.75% interest because the end cost would be \$22,532.67 which is cheaper than the deal with 0% interest.