Mini-assignment #6 Due: January 9 .......dream car, and see how much it costs to finance. My dream car is: __ Why is this my dream car? __ a) How much money is financed (borrowed)? (including tax and everything) b) What is the biweekly payment? c) How much interest will be paid over the life of the loan? d) How much will the car cost, in total? Do you end up paying more or less in total, if the payment is made: weekly: the total cost is: monthly: the total cost is:

My dream car is a **Tesla Model 3 Performance**.<br /><br />Why is this my dream car? It combines cutting-edge technology, impressive performance, sleek design, and environmental consciousness. The acceleration is exhilarating, the autopilot features are fascinating, and the overall driving experience is unlike anything else I've encountered. Plus, being an electric vehicle aligns with my desire for a more sustainable mode of transportation.<br /><br /><br />Let's assume the following for the financing calculations (you'll need to adjust these based on your actual research and location):<br /><br />* **Car Price:** $58,000 (This is an estimated price and can vary based on configuration and location. Research the actual price in your area.)<br />* **Sales Tax:** 6% (Adjust based on your local tax rate)<br />* **Loan Term:** 60 months (5 years)<br />* **Annual Interest Rate (APR):** 5% (Shop around for the best rates available to you)<br />* **Down Payment:** $0 (For simplicity, we'll assume no down payment, but a down payment will significantly reduce the loan amount and total interest paid)<br /><br /><br />**Calculations:**<br /><br />**a) How much money is financed (borrowed)?**<br /><br />* Sales Tax: $58,000 * 0.06 = $3,480<br />* Total Cost (including tax): $58,000 + $3,480 = $61,480<br />* Amount Financed: $61,480 (since we're assuming no down payment)<br /><br /><br />**b) What is the biweekly payment?**<br /><br />To calculate the biweekly payment, we first need to determine the monthly payment using the following formula:<br /><br />M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]<br /><br />Where:<br /><br />* M = Monthly payment<br />* P = Principal loan amount ($61,480)<br />* i = Monthly interest rate (Annual rate / 12) = 0.05 / 12 = 0.004167<br />* n = Number of payments (Loan term in months) = 60<br /><br />M = $61,480 [ 0.004167(1 + 0.004167)^60 ] / [ (1 + 0.004167)^60 – 1]<br />M ≈ $1,144.25<br /><br />Bi-weekly payment: $1,144.25 / 2 ≈ $572.13<br /><br /><br />**c) How much interest will be paid over the life of the loan?**<br /><br />* Total amount paid: $1,144.25/month * 60 months = $68,655<br />* Total interest paid: $68,655 - $61,480 = $7,175<br /><br /><br />**d) How much will the car cost, in total?**<br /><br />The total cost of the car, including interest, will be $68,655.<br /><br /><br />**Weekly and Monthly Payment Comparisons:**<br /><br />To accurately compare weekly and monthly payments, we need to use a loan amortization calculator that accounts for the compounding effect of more frequent payments. Simply dividing the monthly payment by 4 for weekly or multiplying the bi-weekly by 2 for monthly won't be precise.<br /><br />* **Weekly:** Weekly payments would result in slightly *less* total interest paid over the life of the loan because the principal is being paid down faster. Use an online loan amortization calculator and input the loan details, selecting "weekly" as the payment frequency.<br /><br />* **Monthly:** We've already calculated the monthly payment and total cost above.<br /><br /><br />**Important Note:** These calculations are estimates. You should consult with a financial institution to get precise figures based on your specific situation and current interest rates. Also, remember to factor in other car ownership costs like insurance, maintenance, and fuel/electricity.<br />