BUSN BE450 - Assignment #1 45 marks -15% of Final Grade Submit in Canvas by Friday, February 26th at 11:59 pm No late assignments or email submissions will be accepted pose of the Assignment on completion of this assignment, you will be able to: . . Identify features of a used vehicle that affect your purchase decision; Identify factors that affect the cost of automobile insurance; Calculate the monthly amount of a car payment, Calculate TDSR and determine whether you qualify for a car loan, and steps you can take to reduce your ratio to an acceptable level; Evaluate pros and cons of purchasing a vehicle versus leasing a vehicle. lan for your future car purchase! Assume that you have a goal of purchasing a used car after raduation. Completion of this assignment will require research and multiple calculations. Select a used vehicle model year 2019 or older that you are interested in purchasing. While price is important other factors must also be considered such as reliability, cost of repairs, fuel efficiency, and factors which will affect your insurance premiums. (10 marks) a) You must submit a screenshot of the listing of the vehicle. Each student should have a different chosen vehicle. b) You must also provide a short rationale for your choice of vehicle considering the factors listed above and others you consider important. a Please provide evidence of vour research and reference vour sources (hibliography less you need to edit, it's safer to stay in Protected View. Enable Editing n for your future car purchase! Assume that you have a goal of purchasing a used car after duation. Completion of this assignment will require research and multiple calculations. Select a used vehicle model year 2019 or older that you are interested in purchasing. While price is important other factors must also be considered such as reliability, cost of repairs, fuel efficiency, and factors which will affect your insurance premiums. (10 marks) a) You must submit a screenshot of the listing of the vehicle. Each student should have a different chosen vehicle. b) You must also provide a short rationale for choice of vehicle considering the factors listed above and others you consider important. c) Please provide evidence of your research and reference your sources (bibliography). Rationale: I Assume a 10% down payment. Calculate the monthly loan payment on the remaining amount (total price -10% down payment) if paid monthly over 4 years. Assume a car loan rate of 6% compounded monthly. (10 marks) You can refer to your notes from Math of Finance (Math 10037) if you choose to do the calculations by hand. (You can also find a formula sheet posted in Canvas Powerpoint Chapter 6 to assist you with these calculations). Otherwise, the following format, may help refresh your memory of the calculator functions for this step: I Set your BAll Plus Calculator to END. Set your P/Y = 12 for monthly payments Set your C/Y = 12 for monthly compounding PV = The initial amount of your car loan (= purchase price-down payment) FV = Zero (in the future your loan balance will be completely repaid) N = 48 (4 years x 12 monthly payments) 1/Y=6 CPT PMT=Your loan payment. Please show your work in the space below: In consideration of your TDSR, make the following assumptions: Your future income = $50,000/year You pay $1100/month in rent You have a cell phone bill of $85/month You have a student loan payment of $200/month You have a VISA card with a $1000 limit and $200 outstanding balance Car insurance will cost $4000/year Groceries cost you $100/week Gas will cost you $50/week You have no other expenses. BUSN BE450 - Assignment #1 45 marks -15% of Final Grade Submit in Canvas by Friday, February 26th at 11:59 pm No late assignments or email submissions will be accepted pose of the Assignment on completion of this assignment, you will be able to: . . Identify features of a used vehicle that affect your purchase decision; Identify factors that affect the cost of automobile insurance; Calculate the monthly amount of a car payment, Calculate TDSR and determine whether you qualify for a car loan, and steps you can take to reduce your ratio to an acceptable level; Evaluate pros and cons of purchasing a vehicle versus leasing a vehicle. lan for your future car purchase! Assume that you have a goal of purchasing a used car after raduation. Completion of this assignment will require research and multiple calculations. Select a used vehicle model year 2019 or older that you are interested in purchasing. While price is important other factors must also be considered such as reliability, cost of repairs, fuel efficiency, and factors which will affect your insurance premiums. (10 marks) a) You must submit a screenshot of the listing of the vehicle. Each student should have a different chosen vehicle. b) You must also provide a short rationale for your choice of vehicle considering the factors listed above and others you consider important. a Please provide evidence of vour research and reference vour sources (hibliography less you need to edit, it's safer to stay in Protected View. Enable Editing n for your future car purchase! Assume that you have a goal of purchasing a used car after duation. Completion of this assignment will require research and multiple calculations. Select a used vehicle model year 2019 or older that you are interested in purchasing. While price is important other factors must also be considered such as reliability, cost of repairs, fuel efficiency, and factors which will affect your insurance premiums. (10 marks) a) You must submit a screenshot of the listing of the vehicle. Each student should have a different chosen vehicle. b) You must also provide a short rationale for choice of vehicle considering the factors listed above and others you consider important. c) Please provide evidence of your research and reference your sources (bibliography). Rationale: I Assume a 10% down payment. Calculate the monthly loan payment on the remaining amount (total price -10% down payment) if paid monthly over 4 years. Assume a car loan rate of 6% compounded monthly. (10 marks) You can refer to your notes from Math of Finance (Math 10037) if you choose to do the calculations by hand. (You can also find a formula sheet posted in Canvas Powerpoint Chapter 6 to assist you with these calculations). Otherwise, the following format, may help refresh your memory of the calculator functions for this step: I Set your BAll Plus Calculator to END. Set your P/Y = 12 for monthly payments Set your C/Y = 12 for monthly compounding PV = The initial amount of your car loan (= purchase price-down payment) FV = Zero (in the future your loan balance will be completely repaid) N = 48 (4 years x 12 monthly payments) 1/Y=6 CPT PMT=Your loan payment. Please show your work in the space below: In consideration of your TDSR, make the following assumptions: Your future income = $50,000/year You pay $1100/month in rent You have a cell phone bill of $85/month You have a student loan payment of $200/month You have a VISA card with a $1000 limit and $200 outstanding balance Car insurance will cost $4000/year Groceries cost you $100/week Gas will cost you $50/week You have no other expenses