Pretend that you are considering purchasing a car that costs $25,699. The car gets 23 miles per gallon in the city, and 30 miles per gallon on the highway.
1. Determine the monthly payment for each of the following three Financing Options, using the formula given (three different monthly payments).
2. Next, based upon the monthly payments you're found above; determine the total interest paid for each of the three Financing Options.
3. Assume that you will travel an average of 75 miles in the city and 400 miles on the highway each week. Based on the Miles per Gallon information given above (in blue and underlined), determine the total number of gallons you will use each month as well as the monthly fuel expense. Assume that gas prices are currently $1.50 per gallon (I know that gas prices are much higher than this, but let's just pretend), and that there are 4 weeks in a month.
4. Finally, taking into account the Monthly Payment (Part 1) and the Fuel Expenses (Part 2), determine the monthly car budget for this car.
Neat and step-by-step solutions to all parts of the Assignment are provided.