My new car

2013 Land Range Rover Evoque Pure Plus :)

Getting The Best Deal!

My Salary : $100,000

My expenses are: Yearly and monthly

Taxes- $ 25,000 / 2,083

Housing- $35,000 / 2,916

Food- $15,000 / 1,250

Savings- $5,000 / 416.66

Transportation payments- $10,000 / 833.33

Other- $5,000 / 416.66

Medical- $3,000 / 250

Miscellaneous- $2,000 / 166.66

By using the present value formula down bellow, I was able to calculate what I could afford and found the best deal that suit my life style.

Using the total amount that I could afford ($833.33) I calculated:

3 year loan- PV=28,332.12

4 year loan- PV=37,090.70

5 year loan- PV=45,527.41

The car that I found costs $40,998 and I also calculated what I could afford for my monthly payments.

3 year- monthly payment of $1,205.89

4 year- monthly payment of $921.09

5 year- monthly payment of $750.46

My Overall Payment

I chose a 5 year loan which was the best fit for my budget and life style

($750.46)*(12)(5)= $45,027.6

Over all I will be paying $45,027.6 to own my car!

Present Value Formula

Big image

Deal Made

The car that I chose was a 2013 Land Range Rover Evoque Pure Plus that costs $40,998. Although I have a large salary of $100,000, I came close to not being able to afford my dream car due to my other expenses. I had to chose a 5 year loan with a monthly payment of $750.46, because it fit well with my budget. Over the course of the 5 years I will be paying $45,027.6 because of interest, but it is worth paying more since it means I get to drive my favorite dream car. I loved shopping at Carmax because they provided great costumer service and helped me through everything I needed to have done. I trust their work completely and will recommend them to my friends and family who are shopping for cars! You can also view my car at:

Bonus Question

With .375 interest - Monthly payment of $375.54

(375.54) * (12)(5)= $22,533.4

Overall full payment - $22,533.4

Without interest - $408.6 * (12)(5)= $24,516

Mrs. O'Connell with have a full payment of $24,516

Mrs. O'Connell should buy her car paying the .375% interest because she will be saying $33.06 on every one of her monthly payments. Although it would take her longer to pay off the payments, she always has the option to pay more than the minimum monthly payment. Over all Mrs. O'Connell will be paying $22,533.4 to purchase and own her new car.