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					Assignment # 5: Buying a sports vehicle (read the Objective on
the web page).


Vehicle Insurance:

For motorcycles priced up to $5000, PLPD insurance for a year
is $760. The minimum insurance required is PLPD. Collision is an
additional $645. Fire and Theft is another $900.



For an ATV of 250 cc and up, it will cost you $210 a year for
PLPD.

If you take motorcycle training, this will cost you $250.

For a car, you must be 19 years old and have a clean 3 year driving record. Basic insurance
would be $3160 per year!
To get a loan, you must be 19 years of age or older and have a co-signer. You must also have
a job and a savings account with at least several hundred dollars in it!!




Part A: Motorcycle Purchase

Your gross annual salary is (see Instructor)____________.
You work 40 hours per week for 52 weeks. Your wage is
______per hour.

If you have no debt, you are eligible for up to 10% of your
monthly income for a vehicle purchase. However, you must
consider the cost of taxes and a small debt load. For this
assignment, you have a small debt load, so the bank will only
allow you 9% of your monthly income for a maximum monthly
payment.
Therefore…


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Assignment # 5 Part A continued…

My monthly income is my yearly salary divided by 12 months =
__________.

My maximum monthly payment would be 9% of my monthly income
(monthly income x 9%):_________



 A) At #5 on the web page, link to the sites listed or do your
  own Internet search to find a motorcycle you would like to buy.

 Once you know the price, go back to #5 and click the loan
  calculator link. Then click Loan Calculator. Fill in the price of
  the bike.

 The bank wants a $300 down payment, so fill this into the
  appropriate box.

 The bank will lend you the money for up to 48 months (see
  Instructor for the length of your amortization period). Fill this into the
  appropriate box.

 The bank will lend you the money at the rate of 13%. Fill this
  into the appropriate box.

 Click the Province from where the bike is being bought. Now
  click Calculate.

 If the monthly payment is equal to or less than your
   maximum allowable monthly payment, you may buy the bike!




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Assignment # 5 Part A …

 For your Learner booklet, print the loan Calculator page and
  print a picture of the bike along with the bike specs. You may
  also save the picture of your bike and the loan calculations to
  your file.

My monthly loan payment for this purchase is______.

My monthly insurance premium (payment) is______.

The amount I finance (borrow) is_______.

The Interest or what the bank makes from loaning me the money
is_______.

The amount I pay back (money I finance plus Interest) is________.

Review with your Instructor before attempting Part B.




  Part B: ATV Purchase

My monthly income is my yearly salary divided by 12 =
__________.
My maximum monthly payment would be 9% of my monthly income
(monthly income x 9%):_________



 At #5 on the web page, link to the sites listed or do your own
  Internet search to find an ATV you would like to buy.

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 Once you know the price, go back to #5 and click the loan
  calculator link. Then click Loan Calculator.

 Fill in the price of the ATV. Then, follow the same instructions
  as in Part A.



My monthly loan payment for this purchase is______.

My monthly insurance premium (payment) is______.

The amount I finance (borrow) is_______.

The Interest or what the bank makes by loaning me the money
is_______.

The amount I pay back (money I borrow plus Interest) is________.




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