MAT 143 SA FALL 2023 (1)

MAT 143 Signature Assignment Learning outcome: Upon completion students will be able to … ● Research and calculate all the costs associated with the purchase of a car. ● Calculate a budget including monthly net total. ● Use the gathered car information and the budget information to determine if the individuals studied will be able to purchase the selected car. ● Reflect upon the budgets and the practicality of being able to purchase a car. Scoring/Grading rubric: ● This assignment will be graded twice. Once using the rubric listed below for the ability to analyze data using quantitative concepts. And a second time for a mathematical/content grade. The second grade will count as 5% of your overall grade. COMPETENCY: INFORMATION TECHNOLOGY AND QUANTITATIVE LITERACY KEY INDICATOR 2: STUDENT APPLIES QUANTITATIVE CONCEPTS TO ANALYZE DATA. Score Description Score Blank Indicates an assignment was not Submitted. Score 0 Indicates submission of an assignment that does not allow for sufficient or appropriate scoring of skill, for example, an assignment that was plagiarized. Score 1 Beginning Uses the quantitative analysis of data as the basis for drawing unclear conclusions from this work. Score 2 Emerging Uses the quantitative analysis of data as the basis for drawing plausible conclusions from this work. Score 3 Emerging Uses the quantitative analysis of data as the basis for drawing reasonable and appropriately qualified conclusions from this work. Score 4 Proficient Uses the quantitative analysis of data as the basis for drawing insightful, carefully qualified conclusions from this work. **"Reprinted [or Excerpted] with permission from Assessing Outcomes and Improving Achievement: Tips and tools for Using Rubrics, edited by Terrel L. Rhodes. Copyright 2010 by the Association of American Colleges and Universities.” Introduction: In this project, you will … ● Select a car to purchase. ● Analyze the costs involved in purchasing and maintaining the car you selected. ● Calculate the number of hours you need to work each week to maintain the vehicle. ● Calculate monthly budget for two individuals. ● Evaluate whether the individuals can afford to add the car selected to their monthly expenditures. ● 143 Signature Assignment Page 1 of 8

Assignment Instructions: Download this document into Microsoft Word. Type your responses into the document and then upload the completed Microsoft Word document into Brightspace as one document. All assignments must be uploaded to Brightspace as a Microsoft Word document in one document. Assignments submitted in multiple files will receive a reduced grade or a grade of zero for the assignment. If you do not have access to Microsoft Word at home, print this document, complete the lab, and then use a campus computer lab computer to download the document and input your answers. All assignments must be uploaded to Brightspace as a Microsoft Word document in one document. Note: Show your work below each item, then put your final answers on the car calculations worksheet. The car calculations worksheet will be graded. Choose a car (new or used) that you would like to purchase. Be sure to think about the type of car that you would realistically consider purchasing in the next couple of years (not your ultimate dream car). Once you have selected a car, verify that you can find maintenance information for your car on the Edmunds site (see number 9 below). If your car is not listed on the Edmunds site, please pick a similar car which is listed on the Edmunds site and use it for the rest of your calculations. List the car information, including the make, model, year, and list price in item one of the table.I want a Honda Civic. on edmunds site i found 2024 Honda Civic Hatchback that cost $25,945 The tax is $36. I found the maintenance cost on another website so the maintenance for one year is $68 so i took the maintenance cost total of $3144 and divided it by 5 years which gives me 628.80 Determine the amount of your down payment . For this project, make a 10% down payment and fill in the amount in item 2 of the table. In the real world, individuals can choose a different amount, and in fact some loans do not require a down payment. 25945(0.1)=2594.50 Calculate the 3% tax (in N.C., we pay a 3% highway use tax in lieu of state sales tax). The tax is based on the list price. Source: Link to government highway use tax website. 25945(.03)=778.35 Calculate the total amount to be financed. To find the total amount financed, take the list price minus the down payment plus the highway use tax.25945-2594.50+778.35=24128.85 Determine the interest rate for the car. Link to State Employee's Credit Union Website t o research rates. Or, if you prefer, you can look up the rates on another legitimate website (cite your source). Decide on the term of a loan (number of years) that would be reasonable for you. List your rates, term, and source in the table.5.50% Calculate your monthly payment for the loan and the yearly amount. Use this link to find the monthly payment. Note: This is the same calculations that is done with the monthly payment formulas from section 6.3. To find the yearly amount, take the monthly payment times 12. monthly payment=471 total installment price=(471*60)+2594.50=30854.50 finance charge=1000-24128.85=24,028.85 yearly payments=471*12=5,652 Insurance rates are calculated on many factors such as: Age, Gender, Driving Record, Make/Model/Year of car, number of years driving etc … . Insurance rates will very per individual, however for this project, use the following average rates provided by my insurance agent: $2000/year for full coverage on a new car, $1500/year for full coverage on a used car. 143 Signature Assignment Page 2 of 8

Car Calculations Worksheet Directions Descriptions and work space Fill this column with your numbers. # 1 Record your Car’s Make, Model and Year: Make:Honda Model:LX Year:2024 List price of Car:25,945 # 2 Down payment: (10 %) 2,594.50 # 3 N.C. Highway Use Fee: (3% of list price) 778.35 # 4 Total amount to be financed: 24128.85 # 5 Interest rate: _5.50________ and length of loan: ___60_______ Source: state emplyees Leave Blank # 6 Monthly Payment: 471.00 Yearly amount: 5,652.00 # 7 Insurance costs (yearly):3995 3995 # 8 Department of Motor Vehicles fee (yearly):28 28.00 # 9 Total maintenance costs (yearly):258.20 258.20 # 10 Fuel costs (yearly):21.21 21.21 # 11 County taxes (yearly):48.90 48.90 # 12 City taxes (yearly):26.20 26.20 # 13 Yearly Total: (the sum of yearly payments, insurance, DMV fee, maintenance, fuel, and taxes) 10,067.78 # 14 Grand Total (over entire length of loan): (Yearly Total *# years of loan, plus down payment) 52933.40 143 Signature Assignment Page 4 of 8

If you have a job making $12.00 an hour, how many hours do you need to work per month just to pay your car expenses? How many hours do you need to work per week to pay your car expenses (assuming there are 4 weeks per month)? Make sure to answer both questions. (Hint: To calculate your car expenses, divide your Yearly Total by 12) Show your work.52933.40/12=4411.11/12=367.59/4=91.89 How many hours do you need to work per month and per week if you make $15.00 an hour? Show your work.52933.40/15=3528.89/15=235.25/4=58.81 Find the total installment price (sum of all the monthly payments and the down payment) and the finance charge (difference between the total installment price and the list price) for the loan of your car. Discuss what these numbers mean in relation to the list price and the loan. What does the total installment price represent? Is it greater or less than the list price? What does the finance charge represent? Is it better for a smaller or larger finance charge? Your response should be at least 6 sentences. Total installment Price: Finance Charge: Complete the chart for the yearly cost of the car. In the space below write the Yearly Total and the cost of the car over the life of the loan ( Grand Total ). Based on your calculations do these figures make sense? Discuss whether these numbers are higher or lower than you expected and whether you personally would be able to afford this vehicle. Make sure you consider and discuss other life expenses. All verbal responses must be in complete sentences. Your response should be at least 6 sentences. Yearly Total: Grand Total: Review your answers from number 15 and 16. Based upon the information from your car calculations, would an individual be able to afford this car if they earned $12 per hour or $15 per hour? Give details to justify your reasoning and discuss your options. Make sure you consider and discuss other life expenses. All verbal responses must be in complete sentences. Your response should be at least 6 sentences. 143 Signature Assignment Page 5 of 8

Fill in the summary table below to see if they are on budget. Subtract the expenses from the income to find the monthly net total. Monthly Budget Summary Amount Monthly Income Total 4191.67 Monthly Expenses Total 2699 Monthly Net Total 1492.67 Suppose Amari has some unexpected health care expenses that makes his monthly net total decrease by $2000. How does this expense affect his monthly net total compared to before (what you calculated in #22). Use the new monthly net income to explain your reasoning. All verbal responses must be in complete sentences. Your response should be at least 6 sentences. If Amari's original monthly net total was $1492.67, and he incurs unexpected healthcare expenses leading to a decrease of $2000, the new monthly net total would be 507.33 In this scenario, the negative value indicates a deficit in Amari's monthly budget. The unexpected healthcare expenses have surpassed his original net total, leaving him with a shortfall of $507.33. This deficit implies that Amari's income is not sufficient to cover his regular expenses, let alone the unexpected healthcare costs. Amari would like to buy his dream house for $300,000. He finances the whole purchase price of $300,000. Calculate his monthly payment if he secures a home mortgage loan at 6% APR for 30 years. Use this link to calculate the payment. Note, this is the same calculation as we did in section 6.3. Financial advisors use a general rule that your monthly payment for your home mortgage should not be more than 1/3 rd your monthly income. Find 1/3 of Amari’s monthly income. Discuss whether Amari will be able to afford his dream house. Give details to justify your reasoning and discuss Amari’s options. All verbal responses must be in complete sentences. Your response should be at least 6 sentences. Monthly Payment for Dream House: $1,798 1/3 Monthly Income:$1,397.22 Amari can afford his dream house the cost is not as much as his monthly income and is with the disposable income then his dedection Now that we have looked at Amari’s income and expenses, let’s take a look at your own. Follow this link to complete a Reality Check of your expenses and how much you would need to earn yearly to cover all expenses. Discuss whether this yearly income is feasible for you and what adjustments might need to be made. All verbal responses should be at least 6 sentences. Total Monthly Cost:$2,840 Minimum Household Income:$39,080 What have you learned from this project? All verbal responses must be in complete sentences. Your response should be at least 6 sentences. What i had learned from this project is that i really have to 143 Signature Assignment Page 7 of 8

think about getting new cars because they way the economy is set up and how a lot of jobs dont pay as well to make a living and the feeling of calculating all the prices and what im going to spend everytime on a car is very mind blowing. 143 Signature Assignment Page 8 of 8