My First Car Project
Algebra 2
Is there a new car you are interested in? Do you know its approximate price? Do you know how much of a car payment you could afford each month? Based on the payment you can afford, is this car within your reach?
1. With the classmate brainstorm “all the factors to consider” when buying a car. Divide the ideas into logical categories. For example, body styles, frequency of repair, safety rating, condition, and fuel efficiency. Research each category and choose one car. Internet sites to suggest:
http://edmunds.com
http://www.kbb.com
http://www.consumerreports.org/cro/index.htm
2. Go to dealer’s website and build your car. Write down the price assuming that this is the final price after tax and down payment or trade in.
3. Look up New Car interest rates online. What website is the best for the purpose? What do you need to know to find the best rate that fits you?
4. Find out the rates for 3-year, 4-year, 5-year auto loans with monthly payments(assuming you have good credit). Also find out what percentage down payment is required.
5. Now you will calculate the number of months it would actually take you to pay off your car loan based on the price of the car, the monthly payment you can afford, and the interest you have selected. Use the following formula: where PV is the present value of the car after the down payment, PMT is a monthly payment, n is the number of payments (this is what you are finding!), and (Since you will be making monthly payments, the =12.
6. How many months would it take you to pay off your loan? Is the answer reasonable (if you choose a 60 months rate can you actually pay off the car in 60 months)?
7. Calculate your monthly payment for 60 months rate. Can you afford such payment? What can you do to afford the car of your choice?
8. Create an advertisement booklet as your final product. Include the info on your chosen car, specifications, possible bank rates, possible down payment and monthly payment.
To receive full credit all questions must be answered using proper grammar, punctuation, and complete sentences. No question should be left unanswered.
All step-by-step calculations must be shown and must be done correctly.
The choice of bank rates must be thoroughly explained based on your criteria.
The booklet must include all parts outlined in #6; it must be neat and colorful.