Assignment: Open Response 9 (50 points) Answer each of the following. If you are typing, be sure to save this in Rich Text Format, .rtf. Choosing a New Car In this open response, you are being asked to choose a car based on various factors. Car Choices: Disclaimer: the prices on the table are estimates based on 2006 costs. The other costs are simply made up for the purpose of presenting the problem. Details Possible Price Vehicle Class Mpg City/Highway 3 year estimated maintenance/repair costs Annual estimated insurance costs Safety Ratings (Insurance Institute for Highway & Safety) Chrysler Town and Country $20,092 Mini Van 19/26 $ 2,040 $2,080 Acceptable Honda Civic $15,057 Compact 30/40 $2,110 $2,220 Good Jeep Liberty $25,152 Sports Utility 17/22 $2,370 $2,520 Marginal A. Choose two Vehicles to compare from the list above. (5 points) First choice _______________________________________ Second choice _______________________________________ B. Find the monthly loan payment. (10 points) Assume that you make a down payment of $2000, and you finance the remainder with a five-year loan at 6.9 percent APR. Show work for your first choice here: Show work for your second choice here: C. Find the gas costs per year. (10 points) Assume that you will drive about 15,000 miles annually. Find out what gas currently costs in your town and use that to find the gas costs per year. Cost = (Miles Driven / MPG) (CPG) Current cpg in your town________________ Show your work for the first choice here: Show your work for the second choice here: D. Find the annual maintenance/repair costs. (5 points) Use the information from the table above. Show your work for the first choice here: Show your work for the second choice here: E. Fill out the Comparison Table. (10 points) Car Names Price Annual loan payment (Multiply the monthly payment by 12) Gas costs for 1 year Maintenance/repair costs for 1 year Insurance cost Total Annual Expense (add all except Price above) Cost per Mile (divide the total by 15,000) Safety Rating F. Decision Time! (10 points) Which car would you choose if the only factor was Looks? Price? Monthly loan payment? Gasoline costs? Maintenance/ repair costs? Cost per mile? Safety? Consider all above, but also consider anything you are personally looking for in a vehicle. Which of the two choices would you buy? Give at least three reasons why. Extra Credit (5 points) Research for the car of your dreams on the Internet. Fill in the information below. Make and model: Estimated price: Details and options on the car