Question #1: Dan and Marlo need your help. Dan and Marlo are in the market for a new vehicle. Marlo is looking for a reliable car thats relatively inexpensive. Dan is interested in upgrading the familys image. He and Marlo have always driven old used cars, and he thinks its time that they buy a car that is stylish and something that sends a message to his friends and neighbors that they have made it. They have narrowed their list down to five cars. While Dan has his preferences, he has agreed to abide by your estimates when selecting their next vehicle.

Instructions:

Help Dan and Marlo calculate the total monthly cost of the cars they are looking at by completing the table and then answering the following questions.

Which vehicle should they purchase if they are interested only in the lowest monthly loan payment?

What should they choose if they are interested in buying something that has the lowest total monthly cost?

If they are interested in a vehicle with the lowest overall cost of ownership, which one should they choose?

Car 4 Car 5 Type SUV Luxuy SUV Cost Loan interest rate Length of loan (years) Monthly insurance Monthly gas Monthly payment Total monthly expense Total of all payments Overall cost of ownership Car 1 4-Door Sedan $29,000 1.90% 3 $125 $95 Car 2 2-Door Luxury Coupe $43,000 3.40% 5 $170 $150 Car 3 4-Door Luxury Sedan $45,000 0.00% 6 $175 $165 $34,000 1.90% 5 $145 $190 $42.000 3.50% 7 $155 $210