Your assignment is to choose a car to purchase and then figure out the monthly expenses for that vehicle including gas, insurance, monthly payments and maintenance. All of the necessary formulas and information is provided. When everyone has finished, we will compare answers and discuss our findings.
1.Choose a car, a color, and if it is a convertible or not, then determine your monthly expenses based on which financing plan you choose.
Monthly compounding :
I = P * [1 + (R / N)] N / TI = Interest + Principle
P = Principle
R = Annual Interest Rate (decimal)
N = Number of Compoundings per Year
T = Number of Years
Car #1 Car #2 Car #3
Name: Chevrolet Mazda Toyota
Corvette Miata Camry
Color Red, Green Silver, Blue, White, Red,
choices: Black, Yellow Blue, Tan
# of doors: 2 2 4
Financing:
1 year 0.9 % APR 1.9 % APR 1.9 % APR
2 year 2.9 % APR 2.9 % APR 1.9 % APR
3 year 4.9 % APR 3.9 % APR 1.9% APR
Price: $40,800 $21,600 $18,200
Convertible
Price: $48,400 $24,400 N/A
Fuel cost: $65 $35 $45
(per month)
Maintenance : $15 $12 $10
(per month)
2. Find your car in this grid and determine what your insurance cost will be per month:
|
Corvette |
Male |
$112 |
Add $10 if car is red |
|
Female |
$100 |
Add $10 if car is red |
|
|
Miata |
Male |
$65 |
|
|
Female |
$55 |
Add $5 if car is yellow |
|
|
Camry |
Male |
$35 |
|
|
Female |
$30 |
3. Determine what your total cost for your new car will be each month while you are paying it off. Make sure to include all relevant expenses.
Discussion Questions:
•
What are some other areas of the car-buying process that contain discriminatory practices? Are they all illegal?•
Do you feel that the insurance companies are being fair by classifying you based on gender? Are there better ways to determine rates?Based on our in-class discussions, answer the following question in 1-2 paragraphs.
•
What have you learned about inequality in the car-buying process and what role does gender play in determining your "deal" (insurance, price of the car, maintenance, etc.)? Return to portfolio