MoNdAy 10/7/19

INFORMATION TECHNOLOGY (spreadsheets) test WED 10/9

Use the 7 steps of decision making below.

1.  Write down the 7 steps of the decision making process.  After each one explain the step as it would relate to you purchasing a new car. 

For step #1 make sure you talk about both needs for your vehicle and wants for your vehicle. 

For step #2 start at the MINNESOTA website and look at your salary - your resources are 1/3 of your yearly salary.  Show calculations and write down the job you are using as the basis for your salary.

For #3 write at least 3 choices of vehicles.

For #4 there are many ways to evaluate a vehicle.  One way is whether or not it keeps its value.  Complete the chart below by going to Kelley Blue Book and selecting "Price New/Used".  You will need a price from 2019 and also 2014 for all 3 vehicles you chose.  2019 is the option NEW and 2014 you will change the click option to USED.  I suggest you choose "Price Without Added Options" to keep it easy.  Choose "Buy from a Dealer" when looking at 2014 USED.  You are looking for the "Fair Purchase Price".  To get the % decrease you calculate (new -old)/new.

                2019 $       2014 $      % decrease

Car #1

Car #2

Car #3

Combine #5 & #6 and write a couple sentences about why you are choosing your vehicle and/or why not the other vehicles.

For #7 Go to this LINK for a loan calculator.  Use the 2019 Fair Purchase Price and assume a 4 year loan with no down payment, no rebate, no trade-in.  Use 5% interest.  Multiply the monthly payment X 48 (months in 4 years = total you pay).  Subtract that from the Fair Purchase Price and see how much interest you pay the bank for using their money.