Find the total amount of interest paid during the loan

Assignment Help Finance Basics
Reference no: EM132280662

Finance: Problem Set

Show all work for problems 1 to 13.

1. Print out the form above. You may fill in the numbers on that page as indicated. All work must be shown on a separate piece of paper. Write your name under the Purchaser's Name part of the contract. You do not need to fill out the address information.

2. For the car you selected, write the year, make, model, and MSRP in the Vehicle Being Purchased box in the left side of the contract.

3. Suppose you are able to negotiate a selling price of 95% of the MSRP.

Write the selling price into the Selling Price line of the contract. You may carry this value down to the Price After Equipment Change line.

4. Assume you have no trade-in. Write your selling price in the Taxable Total line of the contract.

5. Calculate the sales tax and write this amount in the Sales Tax line of the contract. In the state of Arizona, the tax rate is different depending on where you purchase your car. Currently the Arizona sales tax rate is 5.6%. Maricopa County adds on 0.7% sales tax to support roads and jails. Phoenix has a city tax of 2.3%. That's a total of 8.6% if you purchase your car in the city of Phoenix. Assume we're buying the car in the city of Phoenix, so use the 8.6% sales tax rate.

6. The license fee is 2.8% of the value of your car. The value of your car is 60% of the MSRP (not the purchase price!). Write the license fee in the License Fee line of the contract.

Ex: If the MSRP is $25,000, the value of your car would be: $25,000 × 0.60 = $15,000

Use this value to calculate the license fee. This value is NOT your license fee.

7. Add the title service fee, license fee, sales tax, and purchase price to obtain the total due. Write this amount in the Total Due line of the contract.

8. You plan to make a 10% down payment. Write your down payment in the Total Cash Down box.

9. Calculate the balance due and write this value in the Balance Due line of the contract. Now we will move on to the financing.

Financing: Write the financing information under the FEDERAL TRUTH-IN-LENDING DISCLOSURES part of the contract.

10. Indicate the amount borrowed (balance due) in the Amount Financed box.

11. Assume you can secure a loan at 3.9% for 36 months. Write these values in the Annual Percentage Rate and Number of Payments boxes.

12. Calculate your monthly payment and write this value in the Amount of Payments box.

13. Find the total amount of interest paid during the loan and write the appropriate information in the Total of Payments and Total Finance Charge boxes.

Attachment:- Finance Problems.rar

Reference no: EM132280662

Compute company net working capital

The Centennial Chemical Corporation declared that for the period ending March 31, 2008, it had earned income after taxes worth $5,330,275 on revenues of $13,144,680.

Did one firm pay cash to acquire the other firm

Pick a large merger or acquisition that occurred sometime between 1/2005 and 9/2014 in an industry that at least one of your group members (groups are assigned the first day o

Resource estimates to meet organizational objectives

Project schedule: Using Microsoft® Project, create a schedule for your project's lifecycle. Include specific tasks and milestones, with time and resource estimates, to meet

Prepare a cash flow projection for a construction company

Prepare a cash flow projection for a construction company that currently has two projects under contract for the next year and anticipates picking up a third and fourth projec

What is the balance in the account

a. What is the balance in the account after 4years? How much of this balance corresponds to"interest on interest"? b. What is the balance in the account after 28 years? How mu

Nominal interest rate on treasury security

The real risk-free rate is 2%. Inflation is expected to be 3%this year 4% next year, and then 3.5% thereafter. The maturity risk premium is estimated to be 0.0005% x (t-1),

Calculate each project npv and irr

Set up a Project Δ by showing the cash flows that will exist if the firm goes with the large plant rather than the smaller plant. What are the NPV and the IRR for this Proj

Residual dividend policy and maximum investment funds

Sheffield, Inc. predicts that earnings in coming year will be $20 million. There are eight million shares, and Sheffield maintains the debt-equity ration of 1.4. Compute the



4/11/2019 9:30:33 PM

Need help with this assignment. I need to you to show all the work. Leave the Purchaser's name, address, city, state, zip blank. Show all work for problems 1 to 13. I need this done by tonight. Make up a fake year, make, model, and MSRP, etc. fill out the first page of the PDF. Or you can put a realistic year, make, model and MSRP, etc - it's up to you. Then show work for problems 1 through 13. Write them all out in good English.


4/11/2019 9:30:28 PM

Directions: Solve the following problems. Hand write your solutions and explanations on your own paper. Do not write answers on this page. Show your work AND explain your reasoning using complete English sentences. Explanations must directly follow the solution for each part of the problem. You must write your name on the top right of the paper you turn in. You must write the title of this problem set on the top of your paper. Turn in your solutions following the directions in the assignment information on Canvas.

Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd