To help you with this scenario, I’ll set up a logical framework for understanding the details of the cash incentives program and the loan information provided. Below are some questions and guidance based on this information. When you ask for parts a through d, I’ll assume you may want to explore aspects such as budget, savings, or any calculations related to the loan or fuel savings. Here’s how we can outline those parts.
Part A: Calculate the Total Payment Over the Loan Term
-
Monthly Payment: $480
-
To calculate the total payment over a certain loan term (for example, 5 years which is common), you can use the formula:
\[
\text{Total Payment} = \text{Monthly Payment} \times \text{Number of Months}
\]
Example calculation for a 5-year term:
- Number of Months = 5 years * 12 months/year = 60 months
\[
\text{Total Payment} = 480 \times 60 = 28,800
\]
Part B: Determine How the Cash Incentive Affects the Price of the New Car
If you have a trade-in value of $5,500 applied to the new car, this would effectively lower the overall price that you would need to finance.
Part C: Calculate Fuel Savings
To calculate potential fuel savings, you would need:
- The miles driven per month.
- The fuel efficiency of the old car and the new car.
Assuming:
- Old car fuel economy = \( X \) mpg
- New car fuel economy = \( X + 10 \) mpg
- Monthly miles driven = \( M \) miles
You could calculate:
-
Fuel Consumption Old Car:
\[
\text{Old Car Consumption} = \frac{M}{X} \text{ gallons}
\]
-
Fuel Consumption New Car:
\[
\text{New Car Consumption} = \frac{M}{X + 10} \text{ gallons}
\]
-
Monthly Fuel Savings:
Subtract the fuel consumption of the new car from that of the old car. Then, multiply by the monthly fuel price to get your savings.
Part D: Overall Financial Impact
You may also want to compare the total vehicle costs including payments and fuel expenses over the loan term looking at the initial extra cost if any is incurred, subtracting the incentives and evaluating long-term savings through fuel efficiency.
Please specify the details needed in each part (like specific months for loan term, fuel price, miles driven, old car mpg, and new car mpg) for further calculations, or let me know if you need a different topic covered!