Joe is 16 years old and has decided that he wants a brand-spankin' new Porsche Boxter Convertible, but his mom says there's no way that he could ever afford it! So, Joe has decided to show his mom that he will be able to purchase his dream car at the age of 35 if he plans his finances just right.

The average cost of a Porshe is $60 591. He knows that he will have to put 10% down on his car. To save up for this down payment, he plans on investing a set amount monthly, starting now, into Teen's Choice Financials' Interest Plus Savings Account which pays 4% compounded monthly.

How much will Joe have to put down on his Porsche?

Using the TVM solver, determine how much Joe must deposit monthly into his savings account to have his down payment by the time he turns 35? Make sure to label the variables used. 

After his down payment, Joe hopes to finance the rest of the purchase price at 7.2% compounded monthly over 84 months. Using the TVM solver determine Joe's monthly payments. Make sure to label the variables used. 

If Joe can afford monthly payments of $950, how many years would it take for him to pay off the car?

Answer rating: 100% (QA)

To calculate Joes down payment well start with the average cost of the Porsche Boxter Convertible which is 60591 Joe plans to put 10 down on the car s... View the full answer