Hot Wheelz Project

Liam O'Hara Hour 5

Salary: $30,000

Yearly/Monthly Budget:

Taxes: $7500/$625

Housing: $10,500/$875

Food: $4500/$375

Savings: $1500/$125

Transportation

Payment: $3000/$250

Other: $1500/$125

Medical: $900/$75

Miscellaneous: $600/$50

Car Payment Budget

Yearly: $3000

Monthly: $250

What I Can Afford

3 Year: $8,499.67

4 Year: $11,127.25

5 Year: $13,658.27

The Car

Big image

Monthly Rates for Different Payments

3 Year Monthly Rate: $235.36- I can afford this.

4 Year Monthly Rate: $179.77- I can afford this.

5 Year Monthly Rate: $146.43- I can afford this.

What I Will Actually Spend

I chose a 3 year loan therefore I will pa:

(235.36)(12)(3)= $8472.96 over the course of the loan

I chose the 3 year loan because it is the shortest amount of time that it could take me to pay off all of the payments on my car. I am able to make this payment work because in my budget I am able to spend $8499.67 on transportation payments, and I will only end up spending $8472.96 on this car.

Extra Credit

The Zero Percent Interest Deal would be buying for $24516.00 at $2043 per month.
The $4000 Rebate Deal would be buying for $24662.28 at $2055.18 per month.
Therefore, the Zero Percent Interest offer is a better deal for Mrs. O'Connell.