Case Assignment 3, Buying a New Car

Case Assignment 3: Buying a New Car Name: Institution: Course Name: Instructor: Due Date Case Assignment 3: Buying a New Car Make and Model: Toyota Corolla Price of the car: Starting at $22,050 (Source: By Taylor, A. (2024, February 16). 2024 Toyota Corolla. Retrieved February 18, 2024, from https://cars.usnews.com/cars-trucks/toyota/corolla) I chose the Toyota Corolla due to various reasons. Generally, this car is well-built and versatile, and it is designed to help an individual in their day-to-day journey with minimal fuss. In addition to that, the car has a significantly good rating on Drive and Performance (about six out of ten) (Taylor, 2024). Again, an individual is able to minimize their cost of fuel as the car is fuel economy. According to EPA, Corolla has 38-41 mpg when someone is driving it on the highway and 30-32 mpg when driving in the city. Lastly, this car is also safe, as during the survey, it got a 9.3/10 safety rating. In fact, the National Highway Traffic Safety Administration rated the safety of the vehicle as 5/5 (Taylor, 2024). Monthly Payments over four years The calculations were done using Auto Loan Calculator (https://www.calculator.net/auto-loan-calculator.html?). At 0% down payment, the monthly pay will be $507.80 (considering 5% interest). Table SEQ Table \* ARABIC 1: Monthly Schedule at 0% Down Payment Year Interest Principal Ending Balance 1 $986.52 $5,107.03 $16,942.97 2 $725.23 $5,368.32 $11,574.62 3 $450.58 $5,642.97 $5,931.68 4 $161.87 $5,931.68 $0.00 At a 10% down payment, it means I will pay $2,205 as the initial amount when taking the car on credit. In this circumstance, then I will have to pay $457.02 monthly for the repayment of the credit (still considering the 5% interest rates charged). Table SEQ Table \* ARABIC 2: Monthly Schedule at 10% Down Payment Year Interest Principal Ending Balance 1 $887.87 $4,596.33 $15,248.67 2 $652.71 $4,831.49 $10,417.18 3 $405.52 $5,078.67 $5,338.51 4 $145.69 $5,338.51 $0.00...