HOT WHEELZ ASSIGNMENT

Salery - $65,000

Yearly/ Monthly Breakdown

35% housing - $22,750 / $1,895.83
25% taxes - $16,250 / $1,354.17
15% transportation - $9,750 / $812.50
  • 10% payment - $6,500 / $541.66
  • 5% other - $3,250 / $270.83
15% food - $9,750 / $812.50
5% savings - $3,250 / $270.83
3% medical - $1,950 / $162.50
2% misc - $1,300 / $108.33

Price to Year Ratio

3 years ------- $18,415.73
4 years ------- $24,108.76
5 years ------- $29,592.57

Car Payment per Month

If I choose to pay it off in 3 years ----- $470.67/mo Under Budget
If I choose to pay it off in 4 years ----- $359.42/mo Under Budget
If I choose to pay it off in 5 years ----- $292.84/mo Under Budget
I will choose to pay my car off in the 3 year plan because I can afford to pay it off, saving $70.99 per month and having to pay much less in interest over the course of the 3 years.


TOTAL PRICE - $16,944.12

Bonus Question

It is cheaper to purchase the car with a $4,000 rebate because with that plan, the total price per month will be $375.54, while the 0% interest will cost her $408.60 per month.