Hot Wheels -Salary $65,000/Year

By Cole Chapman

Budget

Housing: $22750
Taxes:$16250
Transport: $9750
Payment: $6500
Other: $3250
Food: $9750
Savings: $3250
Medical:$1950
Misc.: $1300

Car Payment and Cost

Yearly:$6500
Monthly:$541.67
2012 Audi A4- $25998 (Found At Carmax)
http://www.carmax.com/enus/view-car/default.html?id=11615835&AVi=0&No=0&Rp=R&D=50&zip=66204&N=4294963141+285+4294963080&Q=6c4240f9-482e-4501-88e9-6f07fefb9e8c&Ep=search:results:results%20page

For a 3 year loan at 3.75% financing I would pay $764.87 per month.
For a 4 year loan at 3.75% financing I would pay $584.10 per month.
For a 5 year loan at 3.75% financing I would pay $475.89 per month.
I chose the 5 year plan because it was the only one under my maximum of $541.67.

How Much Car I Can Buy

At 3 years paying $541.67 a month or less, I could buy a car that is worth $18,416.07
At 4 years paying $541.67 a month or less, I could buy a car that is worth $24,109.20
At 5 years paying $541.67 a month or less, I could buy a car that is worth $29,593.11

Answer to Extra Credit

With 0% interest the car costs $24,516.00
With $4000 rebate and 3.75% interest the car costs $22,531.40
Therefore the rebate is a better deal.