Used Car Purchase Your trusty old car "Rusty" has finally bitten the dust and it is time to find a new (used) car to replace it. After checking many newspaper and online ads for used cars, you settle on a 2012 Ford Focus. You have negotiated a price of $10,400 with the owner. Answer the following on your own paper, showing all work. You may use a calculator but write out what you are going to enter. Scan and/or upload your work. You paid $6250 for Rusty. You are about to pay $10,400 for your new car. What is the percent increase in car cost? (2 points)

The car sales tax for your state is 7%. What will the sales tax be? (2 points)

You must also pay $18 title fee, $5 plate transfer fee, and $20 registration fee. What is the total of these fees? (1 point)

What is the total cost of your car when you add on sales tax and the fees from #3? (1 point)

You can apply $2000 towards the purchase of the car and must borrow the rest from the bank. How much will you be borrowing? (Use the total cost amount from #4). (1 point)

Go to http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx Links to an external site. to calculate your monthly payment. The auto loan amount will be your answer to #5. Term in years = 4 (or term in months = 48). Interest rate per year = 3%. Auto loan start date = today's date. What is your monthly payment? (1 point)

Because your new car has far more safety features than Rusty had, your monthly insurance payment goes down a little bit - from $75 to $70. What is the percent decrease in insurance payment? (2 points)

Since everyone knows that FORD stands for Fix Or Repair Daily, you decide it would be a good idea to put some money in savings each month to go towards car repairs. If your monthly net income is $2304 and you want to put 3% per month in the car repair fund, how much would this be per month? (2 points)

Your gasoline costs average $85 per month. Now figure out the grand total of what the new car will be costing you each month: loan payment + gas + insurance + repair fund. (2 points)

What is the value and importance of understanding this kind of math? How would you guide another person into purchasing a car? (6 points - Write at least a one paragraph response