Math project Essay Example | Topics and Well Written Essays - 500 words

Math project - Essay Example I considered various factors, including my family expenditure in every month. Finally I came to a conclusion that I could afford to purchase a Honda CR-V within a period of sixteen months. I borrowed a loan from one of the banks in our country. I made this decision with considerations to the costs and interest payments. I also considered down payments, trade in allowances and other debts. This was not the only payment I had to make, thus I allocated an affordable amount to this budget. I had some rent, insurance and taxes that needed to be paid within every month. I therefore had to limit my debt payments to less than 45% of my monthly gross income. My entire household earns $5,000 in terms of gross wages every month. 24% of this amount was spent on rent. This is approximately $1,200. After paying this, only $ 2,550 remains. I still needed money for insurance, groceries, fuel and other household expenses. I decided to budget 20% of my total earnings to the purchase of the car. This meant that I had to set aside $ 1,000 for purchase of the car. The car is one that I can finance for not more than $2,000 per month. I could not spend more than this amount on the car since I needed to cater for all the other needs. I have a family to provide for alongside all other requirements in life. The amount that was hereby allocated to car payments included insurance and registration fees. The car selected is a front wheel drive and costs approximately $31,600. I chose this car since it was affordable for me then. The car also favored my taste and preference. A front wheel drive car is cheaper than a four wheel drive. I had to borrow $32,000 from the bank. This was the lowest amount possible depending on the situation at hand. In making this decision, I had considered all factors, including the total payment, loan term and interest rate. I tried to make the initial