Integrated Car Project (25 test points)

·  For this project, you will need to copy paste and save some info from the internet. Please place these at the end of this document. Answer all other questions in the space provided.

1.  Using various search engines, research purchasing a vehicle. You may purchase new or used. Get at least 3 quotes on similar cars-make/model-to compare. (Suggestion: start at omahasuperads.com or cars.com) Copy, paste, and save your 3 car quotes at the end of this document. Identify the one car you will “buy”.

2.  Research current interest rates for purchasing a vehicle. List them here:

a. Rate quote______% at bank______

b. Rate Quote______% at bank______

3.  Using compute your total car cost using the following scenarios (choose the 2 from above): Show all work to the right of the scenarios

a.  3 year loan, compounded monthly

b.  4 year loan, compounded monthly

c.  5 year loan, compounded monthly

4.  Which scenario gives you the lowest total amount due?

Why?

5.  Using the formula from the credit card project from Wednesday, compute how long it would take to pay off your car for either the 3 or 4 year scenario, given you are paying $350 each month to the car company.

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6.  Take your best “rate deal” for the 3 , 4, or 5 year loan (choose 2) and compute your monthly payment for the 2 you chose. (I would suggest you find an online payment calculator b/c computing monthly payment is complicated.) Copy and paste an amortization table for each loan—this should be on the internet, not by hand. Paste it at the end.

7.  Which year amount seems like the best deal based on monthly payment?

Is it? (justify your answer by computing the total amount spent for the loan).

8.  From the given information, what advice would you give to a friend looking to purchase a new or used car?

9.  What changes (if any) would you make to your purchase choice?

Is you choice affordable to a working adult? Explain.

10.  If the bank were to charge an additional 5% for your loan, what would your monthly payment change to?

Use the online monthly payment calculator from #6. ______

Is this a major difference from #6? Explain.

Copy and paste car quotes and amortization tables here: