Buy a Car, Make a Payment! - Worksheet
Procedure: You will pick a
car from the given resources (even if your dream car is not there!)
and then calculate your monthly payment.
Requirements:You must choose
a minimum of 6 cars you might consider purchasing.
- You must list the year, make (Ford, Honda, Porsche, etc.),
model (Escort, Accord, 240SL, etc.), number of miles (50K = 50,000
miles) and price. If listed, also write down any 'extras' your
car has.
- For this lesson let's assume you have no money for a downpayment
and that you must finance the entire price of the car. Below
is the formula for the monthly payment with a principal, P, interest
rate, r, and number of monthly payments, m .
- P (r / 12) / (1 - (1 + r / 12) ^ -m)
- Write down the set up for a 3 year and a 4 year loan.
- Once you have done the calculations, check them by using
a LOAN CALCULATOR. Find this at the Webfoot site under Useful
Automotive Information and then clicking on Tips on Buying a
Car. Click on the Loan Calculator (Webfoot). Enter the pertinent
information to get your monthly payment. Try out the other Loan
Calculator. It allows you to add in sales tax. (welcome to the
real world!)
Copyright © 1996, Jill Tucker. All rights reserved.
Comments: TuckerJS@fulton.k12.ga.us
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