4. Alan Lewis purchased a new computer for his office using the store's installment credit plan. Thecomputer cost $5,991.64. He made a 40% down payment.4a. What is the down payment?4b. What is the amount financed?5. Melvin Annijo purchased new carpet for $1,498.96; laminated flooring for $2,365.45; kitchen cabinetsfor $7,864.44; and a countertop for $936.12. The Home Supply credit plan requires a 15% downpayment.5a. What is the total amount of the purchases?5b. What is the down payment?5c. What is the amount financed?6. Amanda and Charles Mercer want to remodel their coffee shop. They would like to finance part of thecost but do not want the amount financed to be more than $10,000. The total cost of remodeling theshop is $13,480.6a. Determine how much they need for a down payment6b. Will a 25% down payment be enough?

Since you have asked multiple questions , we will solve the first question for you. If you want any…

4. Alan Lewis purchased a new computer for his office using the store's installment credit plan. The computer cost $5,991.64. He made a 40% down payment. 4a. What is the down payment? 4b. What is the amount financed?

4. Alan Lewis purchased a new computer for his office using the store's installment credit plan. The computer cost $5,991.64. He made a 40% down payment. 4a. What is the down payment? 4b. What is the amount financed?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

4. Alan Lewis purchased a new computer for his office using the store's installment credit plan. The
computer cost $5,991.64. He made a 40% down payment.
4a. What is the down payment?
4b. What is the amount financed?
5. Melvin Annijo purchased new carpet for $1,498.96; laminated flooring for $2,365.45; kitchen cabinets
for $7,864.44; and a countertop for $936.12. The Home Supply credit plan requires a 15% down
payment.
5a. What is the total amount of the purchases?
5b. What is the down payment?
5c. What is the amount financed?
6. Amanda and Charles Mercer want to remodel their coffee shop. They would like to finance part of the
cost but do not want the amount financed to be more than $10,000. The total cost of remodeling the
shop is $13,480.
6a. Determine how much they need for a down payment
6b. Will a 25% down payment be enough?

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2. Jason Bradley decided to buy a home for $271,000. His bank requires a 25% down payment. His attorney, has notified Jason that besides the 25% down payment there will be the following additional costs: Recording of the deed $266.00 A credit and appraisal report 1521.00 Preparation of appropriate documents 444.00 In addition, there will be a transfer tax of 1.5% of the purchase price and a loan origination fee of 3% of the mortgage amount. Assume a 30-year mortgage at a rate of 9.5%. a. What is the initial amount of cash Jason will need? (Do not round intermediate calculations. Round your answer to the nearest cent.) b. What is his monthly payment? c. What is the total cost of interest over the life of the mortgage? (Use the amortization worksheet in the financial calculator.
For problems 15-18, Find the (a) down payment and (b) amount financed 15. Lawrence Huber purchased the finance of a $8,371.39 snowmobile with a 15% down payment 16. Bailey Ruffin bought a new motorcycle for $18,936.50 and made a 30% down payment. 17. Devon Gallagher purchased home entertainment equipment for $4,020.19 using the store's credit plan. He made a 20% down payment. 18. Linda Cusack purchased a $279.50 stereo player for her car. Using the store's credit plan, she made a $50 down payment. 15a 15b 16a 16b 17a 17b 18a 18b
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