Hot Wheelz Project

By: Levi Johnson

Budget

Salary: $30000


Yearly/Monthly Budget:


Taxes: $7500/$625

Housing: $10500/$875

Food: $4500/$375

Saving: $1500/$125

Transportation Payment: $3000/$250

Other: $1500/$125

Medical: $900/$75

Miscellaneous: $600/$50


Car Payment:

Yearly/Monthly: $3000/$250

What can I afford?

3 Year > PV=$8,499.67

4 Year > PV=$11,127.26

5 Year > PV=$13,658.28 (I chose the 5 year plan)


My Car Costs: $12,995 http://www.cars.com/vehicledetail/detail/630456920/overview/


Monthly Payments:

3 Year = $382.22

4 Year = $291.96

5 Year = $237.88 (I can afford this one)


What I will actually spend on the car over the course of the loan:

(237.88)(12 x 5) = $14,272.80

Extra Credit

If Mrs. O'Connell went with the 0% interest for a five year loan offer she would be paying $408.60 a month, and would end up paying $24,516 over the course of the five years. If she went with the $4,000 rebate and 3.75% interest, she would pay $375.50 a month, and $22,531.40 over the course of five years. The rebate offer is overall the better deal.