To buy a $6484 refrigerator a store offers 3% add on rate for 3 years. There is also a 17% sales tax charged. How much would the monthly payment plan cost per month ? Round your answer to one digit after the decimal.

To buy a $6484 refrigerator a store offers 3% add on rate for 3 years. There is also a 17% sales tax charged. How much would the monthly payment plan cost per month ? Round your answer to one digit after the decimal.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 31P

See similar textbooks

Related questions

Q: A motor corporation sells cars for P dollars, 40% of which must be paid in cash. The unpaid balance…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: You are financing a car worth $29039.30 including tax. The interest rate is 10.8% compounded daily.…

A: Loan amount (L) = $29039.30 - $1700 = $27339.30 Interest rate = 10.8% daily compounding (m = 365) n…

Q: What is the amount of interest paid?

A: Interest is the cost of borrowing a loan. It is the excess amount over the principal borrowing. It…

Q: A company plans to purchase a new piece of equipment in 36 months. If $3105 is deposited into a…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: You carry over a balance of $400 on a recent purchase of a washing machine, you will just pay the…

A: Given Minimum payment = 4% of the balance Balance = $400 APR =15.99%

Q: If you borrow $35,000 to buy a car on 10 years loan at 9% annual interest rate, what is the % of…

A: The monthly payment for the loan borrowed is calculated by the present value of the annuity formula.…

Q: A loan of $3,000 for a new, high-end laptop computer is to be repaid in 15 end-of-month payments…

A: Working note:

Q: A school service van is available for purchase at P23,000 bimonthly. The first payment is due at the…

A: Bimonthly payment = P23000 Interest rate = 14% Bimonthly interest rate = 14%/6 = 2.33333333333%…

Q: 9. Shirley Stewart is planning to buy a Toyota hybrid for $18,789 with $1,100 down and plans to…

A: The monthly payment amount can be computed with the help of present value of annuity function.

Q: A refrigerator sold for $500. The store financed the refrigerator by charging 0.5% monthly interest…

A: Given information:Selling price of refrigerator=$500Interest rate=0.5%No. of installments=30a)…

Q: Determine the finance charge, new balance, and minimum payment required for each of the next two…

A: Finance charges refers to those costs or extra amount which is paid by the borrower to the lender on…

Q: Please use excel if possible. A stamping machine is priced at $48,000. If a payment of $1,500 is…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A washer-dryer combination can be purchased from a department store by making monthly credit card…

A: Given: Particulars Amount Monthly payment $46.34 Years 3.5 Interest rate 21% Additional…

Q: One agency offered a customer a new car for a down payment of $ 35,200.00 and 60 biweekly payments…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: 3. Daryl wants to buy a commodity that is worth PhP 10,000. Since it is Valentines season, he was…

A: Balance value of the commodity will be PhP 10000 *(1-discount)

Q: The truck that we will use in our business costs $100,000. 10% of this cost will be paid as a down…

A: Loan amortization is the process of reimbursement of loan periodically by the borrower of the loan…

Q: A car dealer advertises the sale of a car model for a cash price of P 280,000. If purchased on…

A: Formula to Calculate Monthly Payments Monthly Payments = (P X R/12) X [(1 +R/12)^N)/ [(1+R/12)^N -1]…

Q: A school service van is available for purchase at ₱23,000 bimonthly. The first payment is due at the…

A: Bimonthly payment (B) = ₱23000 r = 14% per annum = 14/6 % bimonthly = 2.33% bimonthly n = Number of…

Q: A company sells each waterbottle for $ 10, the company tax rate is 25%. In order to increasing the…

A: This question is related to the finance in which company wants to increase their profit by providing…

Q: You want to buy a $35,000 car. The company is offering a 4% interest rate for 60 months (5 years).…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: One of your customers has just made a purchase in the amount of $26,400. You have agreed to payments…

A: A loan is a debt amount borrowed by one person from another person at a predetermined financial…

Q: Acertain college graduate borrows 5707 dollars to buy a car. The lender charges interest at an…

A: This question is related to the loan. In which a graduate student borrows a loan from the bank. In…

Q: You purchase a washing machine and dryer for P37,500. You pay 20% down and agree to repay the…

A: Given, Price of washing Machine = P 37,500 Down payment = P 37,500*20% = 7500 Interest rate = 8%…

Q: Salty Frozen Yogurt purchases a new refrigeration system for $100,000 on 1/1/21. Salty pays an…

A: Formula: Present value of Annuity = P [ 1 - ( 1 + r )-N / R ] R = Rate of interest N = period P =…

Q: If money is worth 15% compounded monthly, find the monthly payment.

A: The loan amount can be found by adjusting the cost of the watch for the downpayment. The monthly…

Q: Spartan Credit Bank is offering 6.2 percent compounded daily on its savings accounts. You deposit…

A: Annual interest rate = 6.2% Number of compounding per year = 365 Deposit amount = $ 4600

Q: A store will give you a 1.75% discount on the cost of your purchase if you pay cash today.…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: client at ZBX Fin Planning currently has $95,000 in their retirement account that is expected to…

A: Future value of money increases with increase in time and more deposit being made and more interest…

Q: A retailer owes a wholesaler $900,000 due in 45 days. If the payment is 15 days late, there is a 1%…

A: Concept. Certificate of deposit is money market instrument which is issued in dematerialized form…

Q: An automobile dealership offers a car with $0 down payment, $0 first month's payment, and $0 due at…

A: The negotiated sales price is the present value of future payments. It is the discounted value of…

Q: You are purchasing a new car for $27,600. The dealership offers you three options: • 0% financing: 0…

A: Car Price = $27,600 Time Period(Months) = 48 Interest Rate = 0% Down Payment = $0

Q: A local car dealer offers a customer a 3-year car loan of $15,000 using “add-on” interest.The first…

A: Loan is a financial agreement between lender and borrower. Lender lends money to borrower in…

Q: Big Dom's Pawn Shop charges an interest rate of 25.5 percent per month on loans to its customers.…

A: APR refers to the annual percentage return it is calculated by multiplying the periodic rate to the…

Q: You can buy a car for $6,998 with $798 down and payments of $164.51 each month for 48 months.…

A: Using excel rate funtion

Q: Ruby Wilson, a student at State College, has a balance of $350 on her retail charge card. If the…

A: Given Information: Amount balance of $350 Finance charge is 22% Month has 30 days

Q: You carry over a balance of $500 on a recent purchase of a new refridgerator, you will just pay the…

A: Given Minimum payment = 4% of the balance Balance = $500 APR =18.99%

Q: A newspaper advertisement offers a $9000 car for nothing down and 36 monthly payments of $332.50…

A: Answer

Q: 2) Wall street Journal costs $625, payable now for a 3-year subscription. The newspaper is published…

A: The question is based on the concept of an effective interest rate. The effective interest rate is…

Q: The Bourbon Street Journal costs $625, payable now, for a 3-year subscription. The newspaper is…

A: Given information: Nominal annual interest rate : 8.5% Number of days the Journal is published : 252…

Q: How much is the monthly payment

A: Loan Payments: These are payments made by the borrower to the lender for borrowing a sum of money.…

Q: You bought a new refrigerator worth Php16,000 from an appliance store that allowed you to make four…

A: The rate that is actually earned on an investment is called the effective interest rate. It is also…

Q: A local car dealer offers a customer a 3-year car loan of $15,000 using “add-on" interest. $15,000…

A: Effective annual interest rate can be defined as that rate which is charged on annual basis after…

Q: You have a credit card with an APR (Annual Percentage Rate) of 12%. You begin with a balance of…

A: APR = 12% Beginning Balance = $200 Payment = $75 1st month charge = $50 2nd month charge = $60

Q: A store sells a washing machine. Renier offers to give a down payment of P5,000 and pay $2,000 at…

A: Economic value is defined as the value, which have the person to place an economic good on the basis…

Q: A car dealer will sell you a used car for $6,998 with $798 down and payments of $164.51 per month…

A: Using the rate function in excel

Q: An auto dealership is advertising that a new car with a sticker price of $33,768 is on sale for…

A: To open goal seek, firstly go to Data, followed What-if analysis & then goal seek.

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
Blake Department Store sells television sets with one-year warranties that cover repair and replacement of television parts. In the month of June, Blake sells forty television sets with a per unit cost of $500. If Blake estimates warranty fulfillment at 10% of sales, what would be the warranty liability reported in June? A. $1,000 B. $2,000 C. $500 D. $20,000
A refrigerator sold for $500. The store financed the refrigerator by charging 0.5% monthly interest on the unpaid balance. If the refrigerator is paid for with 30 equal end-of-month payments: a. What will be the size of the monthly payments? b. If the first payment is not made until one year after the purchase, what will be the size of the monthly payments?
Arrowood's Camera Store advertises a Canon Power Shot 3.34-megapixel camera for $300, including taxes. If you finance the purchase of this camera for 1 year at an annual percentage rate of 6.8%, find the monthly payment. (Round your answer to the nearest cent.)
A car dealer will sell you a used car for $6,998 with $798 down and payments of $164.51 per month for 48 months. what is the interest rate (rounded to two decimal places) and the APR (rounded to the nearest tenth of a percent).
Aragon credit Union offers to lend Cassidy $35,000 to buy a car; the loan calls for payments of $855.99 per month for 4 years. Which of the following statement is most CORRECT? (Use 6 decimal places) a. The effective annual rate of interest is 8.401 percent b. The monthly rate of interest is .7050 percent. c. The nominal annual rate of interest is 6.7446 percent. d. The monthly annual rate of interest is .7000 e. The effective annual rate of interest is 8.094
You can buy a car for $6,998 with $798 down and payments of $164.51 each month for 48 months. what's the amount of interest, interest rate (rounded to two decimal places) and the APR (rounded to the nearest 10th of a percent)
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.86 for two-and-a-halfyears. The first payment is due on the date of sale and interest is 22% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $9.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
You bought a new refrigerator worth Php16,000 from an appliance store thatallowed you to make four quarterly payments for it. If the store charges 6%compounded monthly for items NOT bought with a down payment, how much isyour quarterly payment?
You have a carry-over balance of $450 of credit card charges with no additional charges and you plan to just pay the minimum payment each month for the next two months. The Annual Percentage Rate (APR) is 15.99% and the minimum payment each month is 4% of the balance. Determine the finance charge, new balance, and minimum payment required for each of the next two months, and the carry over balance for month 3 in the table below: (round all answers to the nearest cent) Month Carry over Balance Finance charge new balance minium payment 1 450.00 2 3