Project Instructions 1

Buying a Car Project

Your assignment for this project is to compare buying two cars using the internet . The
objective is to see what calculations are involved when making a decision to purchase
a vehicle. You will select one new car and one used car. They do not have to be the
same. Pick vehicles you are interested in. When looking at the cars make sure you
write down the price and gas mileage (if listed) from the web page.
Remember you should look for a vehicle that will meet your needs. If you drive on the
highway, maybe a 4-wheel drive truck is not what you need. You might also want to
look at the Consumer Reports top picks at The Best of the Best . Good Luck!!!!!

Complete all the attached sheets.

Final Project Deadline is __________________. No projects will be accepted after

this date!

Print a copy for your draft work. Fill in all the data and calculations by hand. Your final
version must be done on the computer. We will be back in the computer lab
_____________. You will create your final version on the computer then; entering all
data into the sheets.

The FINAL VERSION will then be emailed to me at _____________________. I will

print it for you.

Page 1
 Fall 2009

Student:

Class: Algebra 1
 Car 1 Picture

Car 1 Picture Paste Here

Page 1
 Car 2 picture

Car 2 Picture Paste Here

Page 2
 Student Summary

Car Purchase Summary

CAR 1 CAR 2
CAR MODEL
BASE PRICE
Options
Anti-theft device
Automatic windows
CD player
Air bags:driver, side
Special wheels
Other options

Dealer fees
TOTAL CAR COST

INSURANCE COST for 3 years

Car Registration for 3 years
FINANCING COST for 3 years
Maintenance Cost for 3 years
Fuel Cost for 3 years

TOTAL to Purchase and Operate Car

Page 3
 Loan Payment Calculations
Choose your interest rate: Annual Interest Rate
Cars less than $15,000 6.5%
Cars $15,000 < x < 25,000 7.1%
Cars $25,000 < x < 55,000 7.8%
Cars ≥ $55,000 8.2%

Payment = P*(I/12) / (1-(1+I/12)^(-n))

Where P is the principal loan amount, I is the APR interest rate, and n is the
number of periods (payments).
P – principal amount is the price you pay for the car.
I – interest rate must be expressed as a DECIMAL, i.e. 5.5% =
0.055
n – is the total number of monthly payments; use 36.

Car 1 Payment Formula

Payment = P*(I/12) / (1-(1+I/12)^(-n))

Car 1 Payment is:

$-

Car 2 Payment Formula

Payment = P*(I/12) / (1-(1+I/12)^(-n))

Car 2 Payment is:

$5,632.00
 Car 1 Loan Amortization

Car 1 Loan Amortization Car Name

Interest rate per year Interest rate per month

Principal Paid (Loan
Payment (stays the same each Interest (Beginning Balance x payment – interest
Year Month Payment Beginning Balance month) the interest rate per month) paid)

2009 October 1 Total Car Loan Amount

November 2 23235

December 3

2010 January 4

February 5

March 6

April 7

May 8

Jun 9

Jul 10

Aug 11

Sep 12

Oct 13

Nov 14

Page 5
 Car 1 Loan Amortization

Dec 15

2011 Jan 16

Feb 17

Mar 18

Apr 19

May 20

Jun 21

Jul 22

Aug 23

Sep 24

Oct 25

Nov 26

Dec 27

2012 Jan 28

Feb 29

Mar 30

Apr 31

Page 6
 Car 1 Loan Amortization

May 32

Jun 33

Jul 34

Aug 35

END Sep 36

Total Financing Cost

Page 7
 Car 2 Loan Amortization

Car 2 Loan Amortization Car Name

Interest rate per year Interest rate per month

Principal Paid (Loan
Payment (stays the same each Interest (Beginning Balance x payment – interest
Year Month Payment Beginning Balance month) the interest rate per month) paid)

2009 October 1 Total Car Loan Amount

November 2

December 3

2010 January 4

February 5

March 6

April 7

May 8

Jun 9

Jul 10

Aug 11

Sep 12

Oct 13

Nov 14

Page 8
 Car 2 Loan Amortization

Dec 15

2011 Jan 16

Feb 17

Mar 18

Apr 19

May 20

Jun 21

Jul 22

Aug 23

Sep 24

Oct 25

Nov 26

Dec 27

2012 Jan 28

Feb 29

Mar 30

Apr 31

Page 9
 Car 2 Loan Amortization

May 32

Jun 33

Jul 34

Aug 35

END Sep 36

Total Financing Cost

Page 10
 Insurance, Maint, Registration,

1.) Car Tags – Registration. Get cost by going to this website.

http://www.shelbycountytn.gov/FirstPortal/dotShowDoc/Government/ElectedOfficials/mvd.htm

Car Tags Cost cost per year

2.) Insurance quote

http://www.progressive.com/

Note – do NOT use any of your personal information!

DO NOT give out your SSN
Use the following when asked: email melrosemath@hotmail.com
Birth date 05/21/93

Insurance cost/month Car 1 Car 2

3.) Gasoline cost per year example

miles driven per year 15000

cost per gal 2.25 2.25 2.25

miles per gal 26

total cost $1,298.08

Maintenance

Oil change 4 times per year cost for oil change

Cost for 4 per year

Maintenance Factor Miles driven per year x Maintenance factor

Other Maintenance Year 1 0.0125

Year 2 0.0150

Year 3 0.0175

TOTAL Maintenance for 3 years (Oil+other maint)

Page 11