• The original sale price of a car is $22,194.96. The required down payment is $1,410. The monthly payment a customer will pay on the note is $604.36 for a 3-year auto loan with a promotional financing rate at 2.99%? Given that information respond the Following

• 	Based on the information from Q48, if a customer decides to skip the 2.99% financing promotion loan but take the cash rebate offer, how much cash does the customer need to pay to buy the new car? We assume that regular market interest rate for auto loan is 6%.
  	Selected Answer: $21,213.64 Answers: $19,264.02 $19,865.92 $21,213.64 $21,275.92

• Question 50

  0 out of 5 points

  	Based on the information from Q48 and Q49, what’s the amount of cash rebate can the customer receive from the dealer if he decides to pay for the car with all cash instead of applying for the auto loan with the 2.99% low interest rate?
  	Selected Answer: $1,521 Answers: $1,521 $2,329 $919 $3,930

You would like to buy a house and will need a down payment of $18,119 in 6 months.

How much would you have to invest, each month, starting next month, for 6 months to exactly pay for the down payment if your investments earn 3.7% APR compounded monthly?

you plan to buy a boat for $10,000 and the terms are 20% down payment with the balance to be paid over 40 months in equal monthly installments. If the first payment is one month from today and the interest rate is 24% per year, what is the value of each installment? (round to the nearest dollar)

A travel agent arranged a payment plan for a client. It required a down payment of $300 and 12 monthly payments of $567. What was the total cost of the plan?

Some friends tell you that they paid $14,773 down on a new house and are to pay $769 per month for 30 years. If interest is 6.3% compounded monthly,what was the selling price of the house?How much interest will they pay in 30 years?

You financed the purchase of a $300,000 apartment with a down payment in cash of 20% of the purchase price. The remaining 80% is financed with a mortgage with a 1% monthly interest rate over the next 20 years. The mortgage is repaid with equal monthly installments.

1. Compute the monthly installments on the mortgage. (5 points)

2. What is the outstanding principal balance of the mortgage after 5 years (i.e., after 60 installments)? (5 points)

3. Ten years later (after 120 installments), your bank manager offers to refinance your mortgage with a new loan carrying a 0.9% interest rate for a one- time commission. What is the maximal commission you would be willing to pay? Assume you pay the commission when you refinance. (Hint: Use Excel Solver. Find the EAR of the old and new mortgage.) (10 points)

You want a bank loan in order to buy a car (with no down payment of your own). You already own a house on which you pay $1,600 per month in mortgage payments, $300 per month in property taxes and $100 per month in utilities. Your gross family income is $80,000 per year. You have no other debts. The bank is willing to give you a loan which will be amortized over 5 years (i.e., 60 monthly payments). The interest rate is 6% p.a. (APR). Based on a Total Debt Service ratio of 40% (maximum), what is the maximum loan that the bank would grant you?

In a scene from a television show, a van rolls down an incline and off a vertical cliff, falling into a valley below. The van starts from rest and rolls down the incline, which makes an angle of 19.0° below the horizontal, with a constant acceleration of 3.06 m/s2. After rolling down the incline a distance of 55.0 m, it reaches the edge of the cliff, which is 40.0 m above ground level.

(a) How much time (in s) does it take the van to fall from the edge of the cliff to the landing point?

_______s

b) At the point where the van crashes into the ground, how far is it horizontally from the edge of the cliff (in m)?

____________m

A monopolist will shut down in the short run if:

A movement from an abnormally high rate of unemployment toward a more typical level of unemployment would:

A perfectly competitive firm cannot make economic profits in the long run because:

The journal entry to record the purchase of equipment for a $210 cash down payment and a balance of $620 due in 30 days would include

Multiple Choice:

1. a debit to Equipment for $210 and a credit to Cash for $210.

2. a debit to Equipment for $830, a credit to Cash for $210, and a credit to Accounts Payable for $620.

3. debit to Equipment for $830 and a credit to Cash for $830

4. a debit to Equipment for $210 and a credit to Accounts Payable for $620