Hot Wheels
By Lucy Masters
Salary
$40,000
Annual/Monthly Payments
Housing 35%: $14,000/$1166
Taxes 25%: $10,000/$833
Transportation 10%: $4000/$333
Transportation other 5%: $2000/ $166
Food 15%: $6000/$500
Savings 5%: $2000/$166
Medical 3%: $1200/ $100
Misc 2%: $800/ $66
Car Payment
Yearly: $4,000
Monthly:$333.33
What can I afford?
3 year
PV: $333.33
PV: $11,332.78
4 year
PV: $333.33
PV: $14,836.19
5 year
PV: $333.33
PV: $18,210.85
The car I found costs: $13,999
Monthly Payments
3 year
R=$411.76
Can not afford
4 year
R=$314.58
Within budget
5 year
R=$256.25
Within budget
What I will actually spend on the car over the course of the loan
I chose the 4 year loan so I will pay a total of (314.58)(12)(4)= $15,099.84