Hot Wheels Project

I'm a Flight Attendant with a Salary of \$50,000

Here is my monthly/ yearly budget:

Housing: \$17500/ \$1458.33

Taxes: \$12500/ \$1041.67

Food: \$7500/ \$625

Saving: \$2500/ \$208.33

Transportation:

Payment: \$5000/ \$416.66

Other: \$2500/ \$208. 33

Medical: \$1500/ \$125

Miscellaneous: \$1000/ \$83.33

Here is my car payment:

Yearly: \$5000

Monthly: \$416.66

To figure the yearly cost, I took 50,000 and multiplied it by the percent of the total budget that one certain category has. For monthly, I took the yearly cost and multiplied it by 12.

How Much Can I Afford on a Car?

To figure out how much I can afford, I used the Present Value formula to figure out how much I can pay with a 3, 4, and 5 year loan. This allowed me to see what was the top end of my budget and what was at the bottom end.

Which Loan Should I Choose?

I used the Present Value Formula to figure out which loan I could afford. After doing the math, I figured out that I could pay for a 4 or a 5 year loan. After looking it all over, I decide to pay for a 4 year loan because I want to own my car as fast as possible. To figure out how much I actually spend, I did 259.43 multiplied by 48 (that is 4 years in month form) and got \$17252.64. In 4 years, I'll finally pay off my car and have the satisfaction of actually owning my own car.