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Option $1$: Purchasing my dream car

Go to the car dealer near your house and search for your dream car. You can also search for

your dream car through

autotrader.com and go to your bank's website $($Bank of America, Well

Fargo, Chase, Citi, credit union, etc...$)$ and get the interest rate for your car.

a$)$ Find out how much your dream car cost?

$49,995$

b$)$ Figure out how much tax for tax$)$ you must pay for your dream car.

$$4,374,56$

c$)$ Add the tax amount to your dream car.

$$54,369,56$

d$)$ Find out the interestrate leither through volant or car dealer$)$ for financing your

dream car.

$3\mathrm{.}9\%$

e$)$ Suppose that you put zero down payment and you want to finance your car for $3$ years,

how much is your monthly payment? What is the total cost of your car? What is the

total amount of interest? Monthly paym ent: $$1,473\mathrm{.}83$

tot al cost: $53,057\mathrm{.}83$ interest payed: $3,062\mathrm{.}83$

f$)$ Suppose that you put zero down payment and you want to finance your car for $5$ years,

how much is your monthly payment? What is the total cost of your car? What is the

total amount of interest? monthly payment: $$918\mathrm{.}48$

to tal cost: $$S5,108\mathrm{.}78,$ interest paid: $$5,113\mathrm{.}78$

g$)$ With zero down payment, how much money would you save if you finance it for $3$ years

instead of $5$ years?

$$55,108-$$$53,057\mathrm{.}83=$$$2,050\mathrm{.}17$

h$)$ Suppose you want to put $$5000$ for down payment, and you want to finance it for $5$

years. What is your monthly payment? What is the total cost of your car? What is the

total amount of interest? How much money would you save if you put zero down

payment versus $$5000$ down payment and finance it for $5$ years?

monthly payment $=$$$826\mathrm{.}62$ interest $=$$$4\mathrm{.}602\mathrm{.}35$

Saving: $$5,511\mathrm{.}43$ with $$5,000$ down bayment

i$)$ Reflection: Write a paragraph summarizing what you learned from this project. What

advice would you give your relatives or friends who want to purchase their dream car?

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