Math 136 QEP Car assignment

In this assignment the car I chose was a four door Honda Accord Ex-L model

which was listed for $29,060. I chose this vehicle because Hondas are good cars and I

have always wanted to own an Accord. The gas mileage on this model is 27 miles per

gallon in the city and 36 miles per gallon on the highway. The car’s exterior color is

Champagne Frost which is more of a gold color. The interior’s color is Ivory Perforated

Leather which is an off white color. It looks really sleek and filled with all up to date

features of new cars which includes Bluetooth connectivity, a backup camera, Satellite

radio, and iPod/ mp3 input and many more features. The special finance offer on this

vehicle is 0.9% financing for 60 months. I used autotrader.com to search for my used car.

I browsed through used Honda Accord EX-L models from 2011-2012 until I found the

car I liked. The car I chose was a red 2012 Honda Accord EX-L coupe model. The car

was listed for $21,000. The exterior is San Marino Red which is more burgandy. The

interior is a tan color. The mileage on this vehicle is 35,442. I purchased my vehicle from

Daniels Chevrolet- Buick-GMC trucks in Swainsboro, GA.

My calculations to find the first two months principle and interest were found by

using the simple interest formula. The formula I used to find the interest is I=Prt

(principle, interest rate, time in years) which I converted 5% into a decimal then I

converted 2 months into a fraction 2/12. Next I multiplied the new decimal 0.05 by 2/12

then multiplied it by 21,000 (which is the principal) that resulted in a $175.00 interest. In

finding the principal I used a different formula which is A=P(1+rt). The principal 21,000

is multiplied by 1 plus 0.05 multiplied by 1/6 which equals to 21175. I then reduced

21175 by 21000 which equaled to $175.

All three choices varied in someway, but I would choose the new car with the

incentive of 0.9% for sixty months. I chose the new car with the special because you

don’t overpay as for the cars true value as the others. In the other choices you will end up

paying more for the car than its worth. In the other choices you also pay higher interest

rates. I also would go for the new car because you end up paying way more for a used car

than a new car and you pay much more interest. The new car with the 0.9% incentive

interest rates are fairly low is another great reason why I chose to go with it.

Car Option Purchase

Price

Interest rate Monthly

Payment

Total

Interest

Total

Amount

New- Special

Financing

$29,060

0.9% $495.49 $669.65 $29,729.65

New-

Financed

$29,060 4% $535.18 $3,051. 05 $32,111.51

Used

Financed

$21,000 5% $483.62 $2,213.53 $23,213.53