1. You buy a car for $18,450. You must also pay tax and license fees of...
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1. You buy a car for $18,450. You must also pay tax and license fees of $725. You have $1.500 as a down payment. Your bank will make you a 4-year car loan for the remaining amount, at 7.2% interest, but will charge you a $75 processing fee (which will be added to your loan amount). a. What are your monthly payments? b. What is your finance charge? c. What is the total cost of the car, including finance charges? d. What is the APR? 2. Find the average daily balance for the following credit card account. Assume one month between billing dates. Find the finance charge if the annual interest rate is 22.32%. Find the new balance for the next month's statement. Date C July 11 July 19 July 21 July 27 August 4 August 6 Average daily balance Activity Balance from previous statement Returns Boscov's Car rental Payment Gasoline $136.45 $135.73 $174.19 $115.00 $ 42.65 Finance charge Balance $512.78 New balance for next billing period Comput 1. You buy a car for $18,450. You must also pay tax and license fees of $725. You have $1.500 as a down payment. Your bank will make you a 4-year car loan for the remaining amount, at 7.2% interest, but will charge you a $75 processing fee (which will be added to your loan amount). a. What are your monthly payments? b. What is your finance charge? c. What is the total cost of the car, including finance charges? d. What is the APR? 2. Find the average daily balance for the following credit card account. Assume one month between billing dates. Find the finance charge if the annual interest rate is 22.32%. Find the new balance for the next month's statement. Date C July 11 July 19 July 21 July 27 August 4 August 6 Average daily balance Activity Balance from previous statement Returns Boscov's Car rental Payment Gasoline $136.45 $135.73 $174.19 $115.00 $ 42.65 Finance charge Balance $512.78 New balance for next billing period Comput
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Answer rating: 100% (QA)
SOLUTION a To calculate the monthly payments we need to determine the loan amount and the loan term Loan amount Car price Down payment Tax and license fees Processing fee Loan amount 18450 1500 725 75 ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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