Algebra 2 Hot Wheels Project
Hour 5 O'Connell
Given Salary
$40,000
Yearly/Monthly Budget
- Taxes: $10,000/$833.33
- Housing: $14,000/$1,166.66
- Food: $6,000/$500
- Savings: $2,000/$166.67
- Medical: $12,000/$100
- Miscellaneous: $800/$66.67
- Transportation: Payment- $4,000/$333.33 Other- $2,000/$166.67
Car Payment
- Yearly: $4,000
- Monthly: $333.33
What I can afford
3 Year
PV=$11,332.78
4 Year
PV=$14,836.19
5 Year
PV=$18,210.81
2014 Fiat 500L
The Car I found costs a total of $17,495.
Fiat of Olathe. Retrieved from http://www.fiatusaofolathe.com/new/FIAT/2014-FIAT-500L-1c0988010a0a00651d0f49965ef0e49e.htm
Minimum Monthly Payments
3 Year Car Loan
R=$514.58. This is too much of an amount to pay and tops the amount of money I can use. I will not be using this car loan.
4 Year Car Loan
R=$393.06. This is also too much of an amount to pay and tops the amount of money I can use. I will not be using this car loan either.
5 Year Car Loan
R=$320.22. This car loan is in budget and leaves me with a small amount of money left over that I can use for other things. I will be using this loan because it stays within budget and does not go over the amount of money I have to use for buying a car.
What I Will Actually Spend on the Car Over the Course of the 5 Year Loan
I will spend a total of $19,213.20 over the course of the 5 year loan.
Bonus Question
0% Interest for a 5 Year Loan
R=$0. I would not choose the 0% interest for a 5 year loan since you receive no discount out of this.
$4,000 rebate for a 5 Year Loan
R=$375.22. I would choose the $4,000 rebate for the 5 year loan because you end up paying less than the original price.
What Mrs. O'Connell Will Spend Over the Course of the chosen 5 Year Loan
Mrs. O'Connell will spend $22,513.20 if she chooses the $4,000 rebate instead of the $24,516 for the 0% interest of the 5 year loan. She will spend $2,002.80 less, with the $4,000 rebate, than the 0% interest for a 5 year loan.