ody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,300. He put $1,900 down and financed the rest with a 48-month, 8.0%

ody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,300. He put $1,900 down and financed the rest with a 48-month, 8.0%

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 75IIP

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Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,400. He put $1,700 down and financed the rest with a 48-month, 8.0% loan. What is his monthly car payment by table lookup? (Use Table 14.2) (Do not round intermediate calculations. Round your answer to the nearest cent.) Monthly Payment
before purchasing a used car, cody lind checked https://www.kbb.com to learn what he should offer for the used car he wanted to buy. then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. the carfax was clean so he purchased the used car for $14,750. he put $2,000 down and financed the rest with a 48-month, 7.5% loan. what is his monthly car payment by table lookup? (use table 14.2) (do not round intermediate calculations. round your answer to the nearest cent.) Monthly payment: ?
Belinda wants to buy a second-hand car and visits a number of car dealers before deciding to purchase an as new 1998 Ford Mustang from American Car Sales. The sales person, Jaxson, tells Belinda that the car was manufactured in 1998 and had only done 54,000 kms. Three months later, Belinda has the Mustang serviced with her local mechanic who was a Mustang enthusiast. He comments on the fact that the car was in pretty good condition for a 1994 Mustang, though he was surprised that it had only done 54,000 kms. He would not have been surprised if it had done 100,000 kms. Belinda makes further inquiries and discovers that the Mustang was in fact made in 1994 and she has paid about $5,000 more than the actual market value of the car. Belinda intends to approach American Car Sales about this issue. Does Belinda have any contractual rights against American Car Sales? Required: You are expected to discuss legal rules learned regarding terms of a contract, in particular statements and…
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After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $12,900 price, but financing through the dealer is no bargain. He has $2,500 cash for a down payment, so he needs an $10,400 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 $10,400 for a period of four years at an add-on interest rate of 10 percent. What is the total interest on Richard’s loan? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. What is the total cost of the car? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. What is the monthly payment? Note: Do not round intermediate calculations. Round your answer to the nearest whole number.…
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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)?
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Elizabeth is a young woman living in Barbados. She approaches a bank for a loan to purchase a used car that she found online from Japan Motors. The car costs US$5000 and US$2500 for shipping. Once the car arrives the duty required is 100% of the total including shipping. Elizabeth will require a total loan of US$15,000 to pay for the car, shipping and duties. The bank approves the loan and releases the funds to Elizabeth. Elizabeth is a budding entrepreneur and devises a plan to earn some extra money. Rather than wire the US$7500 to Japan Motors and retain the remaining US$7500 to pay the duty, Elizabeth decides to wire the entire amount of US$15,000 to Japan Motors to pay for two cars. Elizabeth plans on selling the second car at a markup and using the profits towards her own car purchase. Eventually, the shipment arrives at the port with both of the cars Elizabeth purchased. However, Elizabeth has a problem because no one has purchased the second car from her yet. This is because…