Project #2: Car Buying
In this assignment, we will learn how to buy a car and figure out whether it is priced at or below market value.
Need assignment help for this question?
If you need assistance with writing your essay, we are ready to help you!
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
Instructions for Project #2
First, you need to decide on your budget, which is the maximum you can spend on a car, and that maximum number should take into consideration price, tax, registration, and fixing if needed.
Second, go to a website such as cars.com, and search for a car in within your budget constraint.
Third, go to a website such as the one for the Kelly Blue Book, and find out whether the car is at market value, overpriced, or underpriced.
Finally, write a two-page paper discussing your findings and issues to explain or discuss.
- Explain your choice. Why did you select the car that you identified? What are the three different prices the Kelly Blue Book provides?
- Based on Kelly Blue Book prices, is the car overpriced or underpriced?
- Did you have any surprises, prior experience, feedback, thoughts, and so on?
- Referring to the car that you selected, discuss the insurance decisions you will need to make. What type of coverage will you need? What is the minimum amount of coverage you will need (based on your state of residence) and what amount of coverage would you actually like to have? Are there any actions you can take to reduce your premiums? Address these questions, taking into account your current budget and financial status.
ASSIGNMENT NUMBER 2 PROBLEM SET
1. For each of the following situations, what amount would the insurance company pay?
a. Wind damage of $835; the insured has $500 deductible.
b. Theft of a stereo system worth $1,300; the insured has a $250 deductible.
c. Vandalism that does $425 of damage to a home; the insured has a $500 deductible.
2. Beverly and Kyle Nelson currently insure their cars with separate companies paying $650 and $575 a year. If they insure both cars with the same company, they would save 10 percent on the annual premiums. What would be the future value of the annual savings over ten years based on an annual interest rate of 6 percent?
3. As of 2008, per capita spending on health care in the United States was about $8,000. If this amount increased by 5 percent a year, what would be the amount of per capital spending for health care in 10 years?
4.Sarah’s comprehensive major medical health insurance plan at work has a deductible of $750. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, she contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $8,893. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,000. Was her friend correct? Show your computations. Then determine which policy would have cost Sarah less and by how much.
5.The Kelleher family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a $500 deductible per person. If one family member has doctor and prescription medication expenses of $1,100, what amount would the insurance company pay?
6. You are the wage earner in a “typical family,” with $40,000 gross annual income. Use the easy method to determine how much life insurance you should carry.