Ashley Salinas
Fina 2103—(1pm)
Professor Ford
March 20, 2018
Buying Cars/Housing Assignment
Certified Public Accountant, Salary (Graduate) $133,633 annually $11,136 monthly
Car: Max you can afford: $3,898; Monthly payment as calculated: $86.27; Maximum recommended
monthly payment: $92.80
1)Term 3 years
Price of New Car: $ 3,898
Dealer, Title, and Registration Fees $ 270
Sales Tax Rate 6.25%
Trade-In Value $ 0
Down Payment $ 0
Length of Loan (Months) 36
Interest Rate 2.7%
Results
Amount to be Financed: $ 4,411.63
Monthly Payment: $ 127.71
Total Interest Paid: $ 185.93
Summary of Observations: Based on the monthly salary of a Certified Public Accountant at an
accounting firm making $11,136; the max amount of money affordable to buy a car is $3,898. If a car
costs $3,898 and the dealer, title and registration fees total to $270, with a sales tax rate of 6.25%, no
down payment and no trade-in value, with a 36 months loan at an interest rate of 2.7%; then, the
monthly payments of the car would be $127.71, and the total interest paid is $185.93.
Term 4 years
Price of New Car $ 3,898
Dealer, Title, and Registration Fees $ 270
Sales Tax Rate 6.25%
Trade-In Value $ 0
Down Payment $ 0
Length of Loan (Months) 48
Interest Rate 2.7%
Results
Amount to be Financed: $ 4,411.63
Monthly Payment: $ 97.06
Total Interest Paid: $ 247.25
Summary of Observations: Based on the monthly salary of a Certified Public Accountant at an
accounting firm making $11,136; the max amount of money affordable to buy a car is $3,898. If a car
costs 3,898 and the dealer, title and registration fees total to $270, with a sales tax rate of 6.25%, no
down payment and no trade-in value, with a 48 months loan at an interest rate of 2.7%; then, the
monthly payments of the car would be $97.06 and the total interest paid is $247.25.
Ashley Salinas
Fina 2103—(1pm)
Professor Ford
March 20, 2018
Term 5 years
Price of New Car $ 3,898
Dealer, Title, and Registration Fees $ 270
Sales Tax Rate 6.25%
Trade-In Value $ 0
Down Payment $ 0
Length of Loan (Months) 60
Interest Rate 2.7%
Results
Amount to be Financed: $ 4,411.63
Monthly Payment: $ 78.68
Total Interest Paid: $ 309.17
