Hot Wheels Project

By: Marfa Glazyrina

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.

After Seeing How Much I Could Spend, I Picked a Car

My 2015 Kia Forte XL $15,998

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.

How I found the car: http://www.carmax.com/enus/view-car/default.html?id=11772013&AVi=0&No=0&Rp=R&D=50&zip=66204&sP=14000-16000&sY=2015-2015&Q=37ae02d5-241b-4b2c-89d0-7cea98c8c6ac&Ep=search:results:results