Hot Wheels Project

By Rachel Rosenberg


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
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
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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

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.