# Hot Wheelz

## 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

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.