Hour 7 Algebra 2 Project
The Project Overview
For this project, each student was given a different salary and told to go buy a car. We were supposed to figure out the monthly and yearly amount we could spend on the given categories, as well as how much we could spend monthly and yearly on a car if we got a 3-year loan, a 4-year-loan, or a 5-year loan. I was given a salary of $300,000 a year. The categories are as follows, with yearly listed first followed by monthly:
- Housing 35%: $105,000 - $8,750
- Taxes 25%: $75,000 - $6,250
- Food 15%: $45,000 - $3,750
- Savings 5%: $15,000 - $1,250
- Medical 3%: $9,000 - $750
- Miscellaneous 2%: $6,000 - $500
- Transportation (payment) 10%: $30,000 - $2500
- Transportation (other) 5%: $15,000 - $1,250
With this monthly car payment of $2500, I then calculated that I could spend $84996.71 with a 3-year loan, $111,272.55 with a 4-year loan, and $136,582.78 with a 5-year loan.
The car I found costs $84,995, and the link to it is here. With this price, I calculated how much I would spend monthly on the car per type of loan. For the 3-year loan, I would spend $2500 a month, for the 4-year loan, $1909.61, and finally, for 5-year loan, $1555.74. Given these rates, I then looked into how much I would have ended up paying over the course of each loan. I would have ended up paying $90,000 for the 3-year loan, 91,661.28 for the 4-year loan, and $93,344.40 for the 5-year loan. With this information, I decided to go with the 3-year loan.