Math

1. My dream car is a white Maybach 57 2011 the total cost is 372,500. The bank I'm with is CHASE, the annual interest rate (apr) is 2.84% for 60 months.

2. Determine APR convert to decimal?

2.84% - 1% =1.84

3. Time/years to pay loan?

 t = 60months

4. Use formula: (I=prt)?

372,500 *1.84 *5 = 3,427

I = 3,427

5. Determine loan cost use formula: total cost = (salesprice * rate)time + salesprice?

(372,500 * 1.84)5 + 372,500 = 372,509

372,000 * 1.84 = 684.48

684.48 * 5 =3,427

TC = 3,427

6. Determine using linear function: ft=(pr)t+p?

(372,500 * 1.84)5 + 372,500 = 109,203

372,500 * 1.84 = 685,400

1.84 * 5 = 9.2

9.2 + 372,500 = 372,509

FT = 372,509

7. Determine monthly payments divide total cost by number of months?

372,500/60 = 6,208 Monthly Payments(5yrs) is 6,208

8. Repeat steps 4 and 5. Determine if 1% had not been used, did I save?

Step 4 - 372,500 *1.84 * 5 = 3,427

Step 5 - (372,500*1.84)5 + 372,500 = 113,953

372,500 * 1.84 = 685.4

685.4 * 5 = 3,427

3,427 + 372,500 = 379,950 

9.

I think i saved a little but not too much, i really feel like i might be looking to high when it comes to dream cars ,but this is what i want.As far as this assignment it was a little hard in terms of calculation but i believe that i can do better next time.