Car Buying Activity When buying a car, most people cannot afford to buy it for the sticker price. Usually, people take out a car loan. Buyers will pay an initial payment (down payment) on the car that will be paid to the car dealer. The rest of the money will be financed from a car loan. Research current available cars and finance offers. Decide on a new car you would like to purchase. Make (Ex: Ford) BMW Model (Ex: F150) M3 Year 2023 Sticker Price 75,295 You will make a down payment of 10% for the car. What is 10% of the sticker price? 7529.50 The remainder of the cost is what you will be financing (ignore tax, title, and license for this). Subtract your down payment from your sticker price and write your amount to finance here: 67,765.50 You will need to find the current interest rates available for new auto loans. Look at banks, dealerships, credit unions, etc. We will assume you will not be able to get a 0% interest loan from a dealer, so do not select that option. Decide on the rate and time period you will use for this project. Time period: 5 years/60 months Rate: 3.5 Complete the following info: You are borrowing $ 67,765.50 to purchase a vehicle. You will repay the loan with equal monthly payments over 5 compounded monthly. years at 3.5 % interest a. What is your monthly payment? Show your formula used and work to set it up. b. What is the total of all payments made? c. How much interest was charged? 0.027
