Question
In: Accounting
Thando buys a new vehicle from a car dealership. Before he could collect the vehicle from...
Thando buys a new vehicle from a car dealership. Before he could collect the vehicle from the dealership, he concludes an insurance contract with ADS insurance. In terms of the insurance contract, Thando undertakes to pay a premium of R1800, which will be debited from his account every month and the insurer undertakes to make good the damage that the insured may suffer. Upon collection of the vehicle, and before the payment of the first premium; Thando is involved in an accident. It later transpires that the vehicle cannot be repaired; it is a write-off. Thando is worried that the insurance will not make good the damage that he has suffered because he has not paid any premium yet. He approaches you for advice. Advise Thando on the legal position regarding his insurance policy and essentialia of a contract of insurance.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Calvin borrows $20,000 from a car dealership to purchase a vehicle. The car dealership charges 12%...
Calvin borrows $20,000 from a car dealership to purchase a
vehicle. The car dealership charges 12% interest, compounded
monthly. Calvin is expected to pay off the loan principal and all
interest charged with equal monthly payments over a 3-year
period.
a. What will Calvin’s monthly payment need to be? (4 points)
b. With the first monthly payment, how much of this payment will
be “interest”, and how much of this payment will be “principal”? (4
points)
c. Once the loan...
Calvin borrows $20,000 from a car dealership to purchase a vehicle. The car dealership charges 12%...
Calvin borrows $20,000 from a car dealership to purchase a
vehicle. The car dealership charges 12% interest, compounded
monthly. Calvin is expected to pay off the loan principal and all
interest charged with equal monthly payments over a 3-year
period.
a. What will Calvin’s monthly payment need to be? (4 points)
b. With the first monthly payment, how much of this payment will
be “interest”, and how much of this payment will be “principal”? (4
points)
c. Once the loan...
Problem 1. Tanner owns a car dealership and sells used cars. Tanner buys a used car...
Problem 1. Tanner owns a car dealership and sells used cars.
Tanner buys a used car at price $p and has no other costs.
(a) What is Tanner’s total cost if he sells 10 cars?
(b) What is Tanner’s total cost if he sells 20 cars?
(c) What is Tanner’s total cost if he sells y cars, TC(y)?
(d) What is Tanner’s average cost function, AC(y)?
(e) For every additional car Tanner sells, by how much do his costs
increase?...
4.Draymondvisits a car dealership looking for a sports car to cruise the city in style. He...
4.Draymondvisits a car dealership looking for a sports car to
cruise the city in style. He tells thedealership that he can repay
a loan at $475per month for the next sixyears. If thedealership’s
bankis charging customers 6.36%(APR), how much would it be willing
to lend Draymond?
A. lessthan $28,400
B. more than $28,400 but less than $29,125
C. more than $29,125 but less than $29,850
D. more than $29,850 but lessthan $30,675
E. more than $30,675
5.A small business owner...
An auto dealership is advertising that a new car with a sticker price of $33,768 is...
An auto dealership is advertising that a new car with a sticker
price of $33,768 is on sale for $25,995 if payment is made in full,
or it can be financed at 0% interest for 72 months with a monthly
payment of $469. Note that 72 payments × $469 per payment =
$33,768, which is the sticker price of the car. By allowing you to
pay for the car in a series of payments (starting one month from
now) rather...
An auto dealership is advertising that a new car with a sticker price of $34,128 is...
An auto dealership is advertising that a new car with a sticker
price of $34,128 is on sale for $25,995 if payment is made in full,
or it can be financed at 0% interest for 72 months with a monthly
payment of $474. Note that 72 payments × $474 per payment =
$34,128, which is the sticker price of the car. By allowing you to
pay for the car in a series of payments (starting one month from
now) rather...
A car dealership offers you no money down on a new car. You may pay for...
A car dealership offers you no money down on a new car. You may
pay for the car for 5 years by equal monthly end-of-the-month
payments of $407 each, with the first payment to be made one month
from today. If the discount annual rate is 4.52 percent compounded
monthly, what is the present value of the car payments? Round the
answer to two decimal places.
Janet buys a $20,000 car. Prevailing market rates are nominal 8% annual, convertible monthly. The dealership...
Janet buys a $20,000 car. Prevailing market rates are nominal 8%
annual, convertible monthly. The dealership offers her the choice
of a rebate upon purchase of the car for cash, or alternatively,
Janet can make no down payment and 60 monthly payments based on a
nominal 2.5% annual interest, convertible monthly. The first
payment would be due one month after the purchase of the car. The
amount of the rebate is set so that the dealership is indifferent
as to...
You want to buy a new sports car for $88,500. Tthe financeoffice at the dealership...
You want to buy a new sports car for $88,500. Tthe finance
office at the dealership has quoted you an APR of 7% for 72 month
loan to buy the car.1. what will your monthly payments be?2. what is the effective annual rate on this loan?
The owner of a new car dealership claims the average number of days it takes his...
The owner of a new car dealership claims the average number of
days it takes his dealership to sell a Chevrolet Aveo is 50 days. A
random sample of 50 cars had a mean time on the dealer’s lot of 64
days. Assume the population standard deviation to be 7.0 days. Find
the 95% confidence interval estimate of the population mean.
State the Margin of Error, Best Point Estimate and Include
the written statement
Please list all the work.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- An investor is considering purchasing a Treasury bond with a 20 year maturity, an 8% coupon...
- Write a program that copies the contents of one file to a destination file. This program...
- how to conduct a marketing mix for 3d crest white strips
- Is big data analytics used for service innovation at Amazon? If so, please write a brief...
- A shrink-fit process has been used to enhance the pressure carrying capacity of a cylinder. During...
- Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and...
- The Blossom Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a...
ADVERTISEMENT