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.
3 Year Payment
I can afford a $7,143.48 car.
4 Year Payment
I can afford a $14,836.19 car.
5 Year Payment
I can afford a $18,210 car.
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.