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
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.