Dennis Lamenti wants to buy a new car that costs $15,326.72. He has two possible loans in mind. One loan is through the car dealer; it is a four-year add-on interest loan at 7
Q: mectively. Use Annual Cost & CC. 50-ton shovel P30k Z0 ton shovel P38k 20 years 20 years P2k P15k P3...
A: Many companies compare various capital expenditures while selecting from various alternatives. Prese...
Q: The transactions they had for December 2020 is advanced view of what is to come for the shop in 2021...
A: Amount ( all fig are in Php.) Transaction details for the month of Dec, 2020 is been provided alo...
Q: Pharoah Camera Shop Inc. uses the lower-of-cost-or-net realizable value basis for its inventory. The...
A: Lower of cost or net realizable value is the method to calculate the ending inventory balance. It is...
Q: Mort is the owner of an apartment building containing ten identical apartments. Mort resides in one ...
A: Net income (NI), also known as net profits, is computed by subtracting sales from cost of products s...
Q: may an action arising from negligence be waived? explain
A: Negligence refers to very small and insignificant result which needs to be inspect or check. The eff...
Q: Sandhill Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a...
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life years
Q: The purchases and disbursements cycle usually begins when Group of answer choices A user department ...
A: A disbursement seems to be the transfer of funds from one account to another, whether for a purchase...
Q: In the context of choosing a share repurchase over declaring dividends, a share repurchase would
A: As per our guidelines, we are supposed to answer only one question in case of multiple questions pos...
Q: pany is y=48x+1,500,000. The total break ev
A: Breakeven point is the point where the contribution and fixed cost are equal. There is no profit or ...
Q: efore the year began, the following static budget was developed for the estimated sales of 100,000. ...
A: In this question, we have to calculate the flexible budget.
Q: Should financial institutions invest in junk bonds?
A: The answer for the theory question on junk bonds is discussed hereunder. Dear student, As you have...
Q: The records of Kaitlyn Corporation showed the following on December 31, 2020: Gross Purchases $380,0...
A: Solution.. Gross purchase = $380,000 Purchase return = $20,000 Gross profit = $420,000 Beginnin...
Q: Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses. Asse...
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the quest...
Q: Which of the following will decrease the investment in branch's account in the home office account s...
A: Investment in branch account is an asset for the home office.
Q: XYZ Corporation sells only one product with a selling price of $280 and a variable cost of $80 per u...
A: Formula: Break even point in units = Fixed cost / Unit contribution margin
Q: E17.1 (LO 1, 2) (Investment Classifications) For the following investments, identify whether they ar...
A: Since we answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and specif...
Q: On January 1, 2020, ABC Corporation granted an employee an option to purchase 3,000 shares of ABC’s ...
A: Intrinsic value(30-20) = 10 ( market value for January 2020 is 30 and purchase value is 20,w...
Q: On October 1, 2021, ABC Corporation issued, at 99 excluding accrued interest, 3,000 of its 8% 1,000 ...
A: Bond: It is a form of long-term debt issued by company . It is a contract to pay the bondholders int...
Q: Pultz Corporation produces and sells a single product. Data concerning that product appear below. Se...
A: Contribution margin ratio = (Selling price - Unit Variable expense) / Selling price = ($120.00 - $40...
Q: Jeff Boyer, of Rainking Company, designs and installs custom lawn and garden irrigation systems for ...
A: 1. Job costing is a cost accounting methodology which is used to allocate the cost to different jobs...
Q: Share Premium account is recorded as a credit when- a) Shares are sold higher than par value b) Shar...
A: Shares are issued to shareholders against investment made by them into the business. Shares can be ...
Q: document that the auditor would test would mostly likely be the? A. Supplier Invoice B. Purchase O...
A: To verify whether all goods received by the company have been recorded appropriately, the source do...
Q: Miss Granny branch of SG Company is billed for merchandise by the home office at 20% above cost. The...
A: Branch offices are offices that run according to the instruction given by head office. They used to ...
Q: Generally speaking, net operating income under variable and absorption costing will: Multiple Choice
A: The correct option is: be equal only when production and sales are equal. Net Operating Income = S...
Q: During the current fiscal year, the Palm Springs government recorded a $16,200 transfer from the Gen...
A: A complete breakdown of all major government funds, what they have spent, and how much money they ha...
Q: Which of the following audit procedures represent a substantive test of transaction that would valid...
A: Substantive test of transaction is the checking of the transaction with the supporting documents at ...
Q: Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item availab...
A: Cost Inventory method Merchandise inventory a. First in, first-out method (FIFO) 6 x $34 + 11 x ...
Q: Analyse what exposure banking institutions had to the subprime mortgage crisis and how MBSs contribu...
A: Funds- The total amount of loanable funds in an economy is the sum of all the money saved and provid...
Q: The home office of Glendale Company, which uses the perpetual inventory system, bills shipments of m...
A: Solution Gross profit is the profit a business makes after substracting all costs that are related t...
Q: Round your intermediate computations to nearest whole dollar. Calculate the amount of itemized deduc...
A: Solution:- Given, Stuart and Pamela Gibson file a joint return reflecting AGI of $350,000.
Q: On January 1,2011, Smart Inc. granted 200 share options each to 1,000 employees, conditional upon th...
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts fo...
Q: Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The...
A: Warranty is a form of assurance being given by the seller of the goods to the buyers that in case pr...
Q: What is the compensation expense for 2020?
A: Solution:- Given, ABC Company granted the president compensatory share to buy shares on January 1, 2...
Q: May an action arising from fraud be waived? explain
A: Fraud- Fraud is defined as the deliberate misrepresentation of an existing material truth by one par...
Q: Martinez Corporation reports pretax financial income of $264,100 for 2020. The following items cause...
A: Taxable income= Pretax financial income +/- temporary differences +/- permanent differences. Calcula...
Q: Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities; an...
A: Cash flows statement is one of the financial statement that shows all cash inflows and cash outflows...
Q: rane Ranch Inc. has been manufacturing its own finials for its curta 00% of capacity, and variable m...
A: Incremental analysis is prepared to find out the annual cost of the finials for their own curtain ro...
Q: The Chowning Company manufactures ear buds that sell for $20 a pair. The variable cost of each set o...
A: The total cost comprises of variable and fixed cost incurred.
Q: On January 1, 2011, SVTA Bank extended a P1,200,000 loan to ABC, Inc. Principal is due on December 3...
A: Jan -2011 loan sanctioned for 1200000 Rate of Interest 11% Re payment terms, Interest to be paid an...
Q: ear 2022. Prepare an income statement and answer the question below and other questions requiring th...
A: Multi income statement is detailed statement of the net income and separates operations revenues and...
Q: Determine which of the following independent projects should be selected for investment if a maximum...
A: PW method uses discounting rate with calculate present value of cash outflow and inflow and then det...
Q: On January 1, 2022, ABC Company signed a 5-year non-cancelable lease for a building. This is also th...
A: Discounting all lease payments, guaranteed residual value and estimated restoration cost: Year An...
Q: Suppose GENERAL MILLS originally purchased the GENERAL MILLS office building in Downtown LA for $200...
A: As the method of depreciation is not given so we will assume straight line depreciation method for t...
Q: Problem 24. On January 1, 2015, ID Inc. granted to an employee the right to choose either: a. 12,000...
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts fo...
Q: 1. If a company borrows $250,000 for four years at 9%, what would the annual loan payme nts be? If a...
A: In case of multiple questions, we are allowed to solve only the first question. If you want other qu...
Q: Fair value less cost to sell: P650,000 Value in use:P750,000 Carrying amount:P1,010,000 Co...
A: Recoverable amount is higher of the following : Fair value less cost of disposal = P650,000 Valu...
Q: Suppose GENERAL MILLS sold a building for $120 million on June 1, 2021. GENERAL MILS originally acqu...
A: A gain on asset sale occurs whenever an asset is sold for much more than the carrying value. The car...
Q: The units of an item available for sale during the year were as follows: Jan. 1 Inventory 15 units a...
A: FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sold ou...
Q: Wolf Creek Inc has available for issue a $3,200,000 bond due in eight years. Interest at the rate of...
A: The accrued interest is the interest due but not paid yet. It is recorded as liability in the balanc...
Q: Using your P&L account and Balance sheet sheet complete the following calculations: Gross Profit...
A: Profit & loss account and Balance sheet are the financial statements which signify the financial...
Dennis Lamenti wants to buy a new car that costs $15,326.72. He has two possible loans in mind. One loan is through the car dealer; it is a four-year add-on interest loan at
3 |
4 |
and requires a down payment of $1,000. The second is through his bank; it is a four-year simple interest amortized loan at
3 |
4 |
and requires a down payment of $1,000. (Round your answers to the nearest cent.)
dealer | $ |
bank | $ |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Sam can afford to spend $500 per month on a car. He figures he needs half of it for gas, parking, and insurance. He has been to the bank, and they will loan him 100% of the car’s purchase price. (Note: If he had a down payment saved, then he could borrow at a lower rate.) (a) If his loan is at a nominal 12% annual rate over 36 months, what is the most expensive car he can purchase? (b) The car he likes costs $14,000 and the dealer will finance it over 60 months at 12%. Can he afford it? If not, for how many months will he need to save his $500 per month? (c) What is the highest interest rate he can pay over 60 months and stay within his budget if he buys the $14,000 car now?Khiel wants to buy a car that costs $10,000, plus an extra 13% HST for a total price of $11,300. The dealership has a deal for $0 down payment and charges 2.99% interest on the loan. Khiel plans to make car loan payments weekly and has accepted the maximum loan repayment period of 8 years. how much is his weekly care loan payment? how much will he have paid to the dealership by the time his loan is paid off? how much interest will be paid?Ahmad is taking out an amortized loan for $25,000 to buy a new car and is deciding between the offers from two lenders.He wants to know which one would be the better deal over the life of the car loan, and by how much.Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.If necessary, refer to the list of financial formulas . (a) A savings and loan association has offered him a 5 -year car loan at an annual interest rate of 9.3% . Find the monthly payment. $ (b) An online lending company has offered him a 5 -year car loan at an annual interest rate of 8.9% . Find the monthly payment. $ (c) Suppose Ahmad pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? Savings and loan association The total amount paid would be$less than to the online lending company. Online lending company…
- Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an extra 13% HST for a total price of $28,250. The dealership has a deal for $0 down payment and charges 2.79% interest on the loan. Rajesh plans to make car loan payments weekly and has accepted the maximum loan repayment period of 8 years. How much will his weekly care loan payment be? How much will he have paid to the dealership by the time his loan is paid off? How much interest will be paid?Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an extra 13% HST for a total price of $28,250. The dealership has a deal for $0 down payment and charges 2.89% interest on the loan. Rajesh plans to make car loan payments weekly and has accepted the maximum loan repayment period of 8 years. How much will his weekly car loan payment be? What will be the total interest paid?After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,500 price, but financing through the dealer is no bargain. He has $2,100 cash for a down payment, so he needs an $8,400 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,400 for a period of two years at an add-on interest rate of 10 percent. a) What is the total interest on Richard’s loan? b) What is the total cost of the car? c) What is the monthly payment? d) What is the annual percentage rate (APR)?
- Your brother has decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of his present car, the purchase price of the new automobile is $30,000. This balance can be financed by the auto dealership at 2.9% APR and payments over 48 months. Compounding of interest is monthly. Alternatively, he can get a $2,000 discount on the purchase price if he finances the loan balance at an APR of 8.9% over 48 months. Should your brother accept the 2.9% financing plan or accept the dealer’s offer of a $2,000 rebate with 8.9% financing?You are considering buying a new car worth $I5,000. You can finance the car either by withdrawing cash from your savings account, which earns 8% interest compounded monthly, or by borrowing $I5,000 from your dealer for four years at 11% interest compounded monthly. You could earn $5,635 in interest from your savings account in four years if you leave the money in the account. If you borrow $15,000 from your dealer, you pay only $3,609 in interest over four years, so it makes sense to borrow for your new car and keep your cash in your savings account. Do you agree or disagree with the foregoing statement? Justify your reasoning with a numerical calculation.Lashonda is taking out an amortized loan for $29,000 to buy a new car and is deciding between the offers from two lenders.She wants to know which one would be the better deal over the life of the car loan, and by how much.Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.If necessary, refer to the list of financial formulas . (a) Her credit union has offered her a 7 -year car loan at an annual interest rate of 6.4% . Find the monthly payment. $ (b) A bank has offered her a 5 -year car loan at an annual interest rate of 6.4% . Find the monthly payment. $ (c) Suppose Lashonda pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? Credit union The total amount paid would be$less than to the bank. Bank The total amount paid would be$less than to the credit union.
- After careful comparison shopping, Noah Griffin decides to buy a new Toyota Camry. With some options added, the car has a price of $23,610 - including plates and taxes. Because he can't afford to pay cash for the car, he will use some savings and his old car as a trade-in to put down $7,610. Noah plans to finance the rest with a $16,000, 60-month loan at a simple interest rate of 5 percent. What will his monthly payments be? Round the answer to the nearest cent. $ per month How much total interest will Noah pay in the first year of the loan? Round the answer to the nearest cent. (Use a monthly payment analysis procedure similar to the one in Exhibit 7.7.) $ How much interest will Noah pay over the full (60-month) life of the loan? Round the answer to the nearest cent. $ What is the APR on this loan? Round the answer to 2 decimal places. %The Allens are considering buying a house and need to figure out what they can afford and what a bank will lend them. Bill’s annual income is $165,000. Their monthly mortgage payment for the house they want would be $1,650. Their annual property taxes would be $9,000. The home-owner’s insurance premium would cost them $1,100 per year. They have a $550 per month car loan. Their average monthly credit card bill is $4,800. Will the bank lend them the money to purchase the house using the back end ratio with an acceptable range of 36% or less? NO- (53.03%)Dennis Lamenti wants to buy a new car that costs $15,177.57. He has two possible loans in mind. One loan is through the car dealer; it is a four-year add-on interest loan at 7 3/4% and requires a down payment of $1,000. The second is through his bank; it is a four-year simple interest amortized loan at 7 3/4% and requires a down payment of $1,000. (Round your answers to the nearest cent.) (a) Find the monthly payment for each loan. dealer ? bank ? (b) Find the total interest paid for each loan. dealer ? bank ?