My New Car

Kate Wilkerson Hour 7

Salary- $40,000

Housing- y= $14,000 m= $1166.66

Taxes- y=$10,000 m=$833.33

Transportation- (10%) y=$4,000 m= $333.33 (5%) y= $2,000 m= $166.66

Food-y=$6,000 m= $500

Savings- y=$2,000 m=$166.66

Medical- y= $1,200 m= $100

Miscellaneous- y= $800 m= $66.66

The Car I Choose

I choose a 2004 Range Rover with a little over 90,000 miles for $12,999.

4 Year Payment Plan

I purchased the Range Rover at a price of $12,999. By choosing the 4 Year Payment Plan, I will pay $292.05 a month. In 4 years, I will have payed $14,018.40 over the course of this loan. This plan made the most sense for my budget.

Extra Credit

It would be better for Mrs. O'Connell to do the $4,000 rebate with 3.75% interest because in 5 years she would have paid $22,925 instead of the asking price of $24,516.