MATH

Petch/Math 1332 Name:__________________________

Finance Project – Car Loan

Do research to find a car that is right for you. In this project you will find a car, calculate how much the car will cost and choose a financing option for the car. Choose a realistic car that you may want to purchase in the near future. The cars that you select could be new or used but no luxury sports cars or cars over $100,000. Round all dollar amounts to the nearest cent. Show all your work to earn full credit. Part 1: Find a Car 1. Research a few types of cars that fit your needs. Be REALISTIC in your car purchase. Choose TWO cars

to analyze. Attach a copy of the dealer information for each car and complete the table below.

Car 1 Car 2

Make:

Model:

Year:

MPG (city):

Price (MSRP):

I like this car

because….

Part 2: Cost of a Car 1. Sales tax: When you purchase something you must pay sales tax. Currently, Texas requires you to pay

8.25% in sales tax. Calculate the sales tax for each car that you chose. Write the total amount of sales tax in the box below and round to the nearest cent. SHOW YOUR WORK!!!

Car 1 Car 2

Sales Tax Owed

Sales Tax: _____________

Sales Tax: ______________

2. Down Payment: Let’s say you want to put 20% of the sale price as a down payment. Calculate how much

money you would need for a down payment. Use the price of the car from the first page as the sale price. SHOW YOUR WORK!!!

Car 1 Car 2

Down Payment

Down Payment:___________

Down Payment: ___________

3. The average registration fee in Texas is $94 dollars. Calculate the amount you would need to finance the

car. Use $50 as S&H fees from the dealership. Assume that we are not trading in our current car.

Car 1 Car 2

Calculations

Amount Financed

4. Suppose that you drive, on average, 15,000 miles per year. In Texas, gas prices right now are averaging $1.81 per gallon. What is the annual fuel expense for each car? Round your answer to the nearest cent. SHOW YOUR WORK!

Car 1 Car 2

Annual Fuel Expense

Annual Fuel Expense: _________

Annual Fuel Expense: _________