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
Over all I will be paying $45,027.6 to own my car!
Present Value Formula
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.