4. A school superintendent purchases a new sedan for P26,788. a. If the sales tax is 5.25% of the purchase price, fi nd the amount of the sales tax. b. The superintendent makes a P2500 down payment and the license fee is P145. Find the amount the superintendent must fi nance. c. Assuming the superintendent gets the loan in part b at an annual interest rate of 8.1% for 5 years, determine the superintendent's monthly car payment.

4. A school superintendent purchases a new sedan for P26,788. a. If the sales tax is 5.25% of the purchase price, fi nd the amount of the sales tax. b. The superintendent makes a P2500 down payment and the license fee is P145. Find the amount the superintendent must fi nance. c. Assuming the superintendent gets the loan in part b at an annual interest rate of 8.1% for 5 years, determine the superintendent's monthly car payment.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.19E

See similar textbooks

Similar questions

3. Carlos Menton purchases a new laptop computer from Knox Computer Solutions for P1499. If the sales tax is 4.25% of the purchase price and Carlos finances the total cost, including sales tax, for 3 years at an annual interest rate of 8.4%, find the monthly payment.
The EZ Credit Company offers to loan a college student $6,000 for school expenses. Repayment of the loan will be in monthly installments of $304.07 for 24 months. The total repayment of money is $7,297.68, which includes the original $6,000, $1,207.04 in interest charges, and $90.64 for a required life insurance policy covering the amount of the loan. Assume monthly compounding of interest. What nominal interest rate is being charged on this loan?
Use the following to answer questions 25 – 27 On January 1, year 1, ST borrows $24,000 to purchase a new vehicle by agreeing to a 4.0%, 4-year note with the bank. Payments of $541.90 are due at the end of each month with the first installment due on January 31, ROUND YOUR ANSWERS TO THE NEAREST CENT. year 1. 25. After the first car payment (installment) is made the amount owed on the vehicle would be: $ 26. Determine interest expense for the second car payment $ 27. After the Company pays all the car payments, how much do they owe at the end of the 5 years? $
For questions 1 - 9: A recent university graduate is purchasing a new Honda Civic LX Sedan for $20,345, which includes destination and handling charges. The term of the loan is 5 years (60 months). Payments are made monthly. The interest rate is 5%. The loan is a closed end credit loan. Sales tax is 7% (Indiana) and is included in the loan. Sales tax is owed on the new vehicle price minus the trade-in value. The graduate is trading in their current vehicle, which has a trade-in value of $4,000 and is owned free and clear. The only equity in the transaction is the trade-in vehicle. There currently are no rebate offers or other incentives by Honda on Civics. 6. How much of the first monthly payment will be interest and the how much interest is in the last monthly payment? $75.37 and $2.25 $79.50 and $1.03 $84.88 and $3.59 O $72.87 and $1.37
You take out a consumer loan at your credit union for new insulated windows for your house. The total installed cost is $8,900 of which you pay 16% down. The balance is to be paid in 48 equal monthly payments with a finance charge equal to 6.8% add-on interest on the outstanding balance. Find the monthly payment. OA S255,14 O B. S171.39 OC. 5198.11 O D. $211.27 QUESTION 7 Find the minimum cash investment for a FHA loan on a home in a low closing cost state costing $107,450 with closing costs of $650. OA $2960,18 OB. 53712.32 ০s3223.50 OD.53175.07
34. You purchase a riding lawnmower for $1484, including sales tax. You pay 15% down and agree to pay the balance in 18 equal monthly payments. If the finance charge on the balance is 12.3%, find the size of the monthly payment for this purchase. A) $114.31 B) $104.31 C) $77.10 D) $86.10
2. Jason Bradley decided to buy a home for $271,000. His bank requires a 25% down payment. His attorney, has notified Jason that besides the 25% down payment there will be the following additional costs: Recording of the deed $266.00 A credit and appraisal report 1521.00 Preparation of appropriate documents 444.00 In addition, there will be a transfer tax of 1.5% of the purchase price and a loan origination fee of 3% of the mortgage amount. Assume a 30-year mortgage at a rate of 9.5%. a. What is the initial amount of cash Jason will need? (Do not round intermediate calculations. Round your answer to the nearest cent.) b. What is his monthly payment? c. What is the total cost of interest over the life of the mortgage? (Use the amortization worksheet in the financial calculator.
2. You purchase a washing machine and dryer for P750. You pay 20% down and agree to repay the balance in 12 equal monthly payments. The finance charge on the balance is 8% simple interest. a. Find the finance charge. b. Estimate the annual percentage rate. Round to the nearest tenth of a percent. 3. Carlos Menton purchases a new laptop computer from Knox Computer Solutions for
A firefighter for the National Park Service has a 5-year car loan for which the monthly payment is $760.46 with an annual interest rate of 3.75% compounded monthly. After making 36 payments, the firefighter decides to trade in the car for a new car. Calculate the amount (in dollars) the firefighter still owes on the car. (Round your answer to the nearest cent.)
In order to pay for school, you borrow $22,000 at 12 percent/year compounded monthly. You do not pay back any of it until the end of the first month following year 4, and you intend to have it paid off by the end of year 7. a. What are your monthly payments during years 5, 6, and 7? b. How much interest is in the sixtieth month's payment? How much principal? c. How much interest is in the sixty-fourth month's payment? How much principal? d. How much interest is in the sixty-eighth month's payment
A4 Upon graduation, Terrence purchases a home theatre system through financing $5,000 by his credit card. The card charges 21 percent per year compound monthly. He fully pays the load with the following plan: Pay X in principal at the end of months 1, 2, and 3; pay $2X at the end of months 4, 5, and 6; then 3X at 7, 8, 9; and finally $4X at 10, 11, 12. In addition, Terrence pays the accumulated interest at the end of each interest period. What is the value of X? Make a table to show the payment amounts (principal plus interest) and schedule for the loan.
1) Ms. Smith borrowed P125,000 at 11% stated rate of interest and was to pay back the loan in 24 monthly payments. What is her effective rate of interest? A. 10.56% C. 21.12%B. 18.96% D. 22.00% 2) Kenneth's Arrows and Bows borrow P10,000 for one year at 12% interest. What is the effective rate of interest if the loan is discounted?A. < 12.5% C. > 13.5% but < 14.5%B. > 12.5% but < 13.5% D. > 14.5% 3) Koopman's Chickens, Inc. plans to borrow P300,000 from its bank for one year. The rate of interest is 10%, but a compensating balance of 15% is required. What is the effective rate of interest?A. < 11.4% C. > 11.6 % but < 11.8 %B. > 11.4% but < 11.6% D. > 11.8 %