Please check the work that been done and continue the rest 9:46Aa2. Jesse is buying a new car. The base price is $27.940. Jesse has a downpayment of $3500.Extra chargesDelivery chargeFreightFederal air conditioning taxa. What is the total vehicle price before taxes?$850$495$100$26.940 + $3500+ $850 + $495 + 100= $31885The total of vehicles before tax is $31885.00b. What is the total amount that Jesse will need to pay after taxes?Remember that new vehicles need to pay both PST (6%) and GST (5%).(6%)+ (5%) = 11%$31885.00 x 0.11= $ 3504.053504.05 + 31885.00 = $35389.05 in total after taxesc. What is the total price of the car after taxes and less the down payment?(This is the amount of the loan Jesse needs)$35389.05 - $3500 = $31885.00d. Jesse pays for his new car with a personal loan from his bank. His loan is 5%over 3 years. How much interest will Jesse pay? (Use an online loancalculator to help you.)e. What is the total cost of the car? (Remember to include the downpayment in the cost)f. What are some things that Jesse could do to reduce amount he pays atthe end of the loan?Send To >Your StoryClose Friends

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 18P

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9:46
Aa
2. Jesse is buying a new car. The base price is $27.940. Jesse has a down
payment of $3500.
Extra charges
Delivery charge
Freight
Federal air conditioning tax
a. What is the total vehicle price before taxes?
$850
$495
$100
$26.940 + $3500+ $850 + $495 + 100
= $31885
The total of vehicles before tax is $31885.00
b. What is the total amount that Jesse will need to pay after taxes?
Remember that new vehicles need to pay both PST (6%) and GST (5%).
(6%)+ (5%) = 11%
$31885.00 x 0.11= $ 3504.05
3504.05 + 31885.00 = $35389.05 in total after taxes
c. What is the total price of the car after taxes and less the down payment?
(This is the amount of the loan Jesse needs)
$35389.05 - $3500 = $31885.00
d. Jesse pays for his new car with a personal loan from his bank. His loan is 5%
over 3 years. How much interest will Jesse pay? (Use an online loan
calculator to help you.)
e. What is the total cost of the car? (Remember to include the down
payment in the cost)
f. What are some things that Jesse could do to reduce amount he pays at
the end of the loan?
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Close Friends

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