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CV Search gs Review View Help TT Normal No Spacing Heading 1 He Paragraph Styles Leasing or Purchasing a Vehicle Lab Name: Date: Cover Page Do not write here until you choose your car! Continue to Instructions (page 3). Car Make: Car Model: Year: Mileage: Price indicated on advert: Paragraph Instructions 14 Styles A. Use the internet to find a car advertisement for purchase, or perhaps that you would like to purchase. You may use any website you wish such as Kiji, Autotrader. CONDITIONS: The price of the vehicle must be over $15,000 but under $35,000. Screenshot the advertisement, you must submit a copy of it to me. Please attach the image/screenshot to page 2 (page numbers are at the bottom of each page). If you cannot find an advert, I have a few ready. B. Fill out the cover page with the details of the car. (5 marks) The car you have chosen is now the car you are planning to purchase. You will be using the "pretend" scenarios in each question to complete this unit exam. Please use the price indicated on your advertisement and the following tax rates and factors given in each question to continue. Show all your work for full marks!! 1. a) The car you have purchased has a depreciation of 35% in the first two years. What is the total amount of depreciation in the first two years? (2 marks) red to this PC v Search S Mailings Review View Help EEE T < T Normal No Spacing Heading 1 Heading 2 Paragraph F Styles 2. a) For this question, you require new windshield wipers for your car. They are $18.99 at Canadian Tire. If you live in Ontario (13% tax), how much are the wipers if you consider tax? Hint: At Canadian Tire, they sell one wiper blade in a package. (3 marks) You pay for the wipers on your credit card. Refer to your credit card statement (see page 477). Credit Card STATEMENT Credit Limit: Annual Interest Rate: Daily ABM Cash Advance Limit: $8000 12.9% $500 Annual Interest Rate on Cash Advances: 18.9% Annual Fee: Grace Period: Minimum Payment: $12 21 days greater of $10 or 3% of balance Interest is compounded daily b) What is the due date for the January 18th statement? (1 mark) c) A 3% minimum payment needs to be made on the 18th of each month. Calculate the minimum payment for Billy's January statement which has a balance of $389.40 (1 mark) On d) Explain one advantage and one disadvantage of Billy using his credit card to make all his holiday purchases. Accessibility: Investigate Q Search (2 marks) DF W S Review View Help TET Normal No Spacing Heading 1 Heading 2 Paragraph Styles 3. a) You live in Ontario (13% tax), how much is your vehicle with tax? (2 marks) b) You have saved $6,000 to purchase your vehicle. Still in Ontario, you head to your local bank to get a loan. Considering you have $6000, how much money will you need to borrow to buy the vehicle? Hint: Use the number you found from a). (1 mark) c) You are approved for a loan from the bank for the amount that you wish to borrow. You can buy the vehicle for $584.00 each month for the next 5 years. How much have you paid for the car in interest? Hint: You will need to use the number found from b). (3 marks) 4. a) In this question you live in Saskatchewan. The vehicle you have been working with is now used and you are buying it from a friend. Using the same price listed on your advert, how much money will you owe your friend, including taxes? (1 mark) Hint GST is not charged on used vehicles that are bought privately in Canada. PST varies by province or territory. PST is not charged on used vehicles bought in Saskatchewan. b) Name one advantage and one disadvantage to buying a used vehicle. (2 mark) essibility: Investigate ngs Review View Help TT Normal No Spacing Heading 1 Head Paragraph Styles 5. You might consider leasing your vehicle. The lease agreement would consider: Term: 4 years Monthly payments: $500.00 Security deposit: $629.00 Delivery charge: $440.00 Kilometer allowance: 20 000/year ($0.20/km for each additional kilometre) The residual value (the price of the car after the lease) at the end of the lease term is $8000.00 a) How much will it cost to lease the vehicle over a 4 year term? Assume you return the vehicle in good condition having driven 105, 000 km. (4) marks) b) If you purchase the vehicle at the end of the lease term, how much will you have paid for it? If you buy the vehicle at the end of your lease, your security deposit is returned and you are not required to pay if you go over your kilometre allowance. (2 marks) CV Search gs Review View Help TT Normal No Spacing Heading 1 He Paragraph Styles Leasing or Purchasing a Vehicle Lab Name: Date: Cover Page Do not write here until you choose your car! Continue to Instructions (page 3). Car Make: Car Model: Year: Mileage: Price indicated on advert: Paragraph Instructions 14 Styles A. Use the internet to find a car advertisement for purchase, or perhaps that you would like to purchase. You may use any website you wish such as Kiji, Autotrader. CONDITIONS: The price of the vehicle must be over $15,000 but under $35,000. Screenshot the advertisement, you must submit a copy of it to me. Please attach the image/screenshot to page 2 (page numbers are at the bottom of each page). If you cannot find an advert, I have a few ready. B. Fill out the cover page with the details of the car. (5 marks) The car you have chosen is now the car you are planning to purchase. You will be using the "pretend" scenarios in each question to complete this unit exam. Please use the price indicated on your advertisement and the following tax rates and factors given in each question to continue. Show all your work for full marks!! 1. a) The car you have purchased has a depreciation of 35% in the first two years. What is the total amount of depreciation in the first two years? (2 marks) red to this PC v Search S Mailings Review View Help EEE T < T Normal No Spacing Heading 1 Heading 2 Paragraph F Styles 2. a) For this question, you require new windshield wipers for your car. They are $18.99 at Canadian Tire. If you live in Ontario (13% tax), how much are the wipers if you consider tax? Hint: At Canadian Tire, they sell one wiper blade in a package. (3 marks) You pay for the wipers on your credit card. Refer to your credit card statement (see page 477). Credit Card STATEMENT Credit Limit: Annual Interest Rate: Daily ABM Cash Advance Limit: $8000 12.9% $500 Annual Interest Rate on Cash Advances: 18.9% Annual Fee: Grace Period: Minimum Payment: $12 21 days greater of $10 or 3% of balance Interest is compounded daily b) What is the due date for the January 18th statement? (1 mark) c) A 3% minimum payment needs to be made on the 18th of each month. Calculate the minimum payment for Billy's January statement which has a balance of $389.40 (1 mark) On d) Explain one advantage and one disadvantage of Billy using his credit card to make all his holiday purchases. Accessibility: Investigate Q Search (2 marks) DF W S Review View Help TET Normal No Spacing Heading 1 Heading 2 Paragraph Styles 3. a) You live in Ontario (13% tax), how much is your vehicle with tax? (2 marks) b) You have saved $6,000 to purchase your vehicle. Still in Ontario, you head to your local bank to get a loan. Considering you have $6000, how much money will you need to borrow to buy the vehicle? Hint: Use the number you found from a). (1 mark) c) You are approved for a loan from the bank for the amount that you wish to borrow. You can buy the vehicle for $584.00 each month for the next 5 years. How much have you paid for the car in interest? Hint: You will need to use the number found from b). (3 marks) 4. a) In this question you live in Saskatchewan. The vehicle you have been working with is now used and you are buying it from a friend. Using the same price listed on your advert, how much money will you owe your friend, including taxes? (1 mark) Hint GST is not charged on used vehicles that are bought privately in Canada. PST varies by province or territory. PST is not charged on used vehicles bought in Saskatchewan. b) Name one advantage and one disadvantage to buying a used vehicle. (2 mark) essibility: Investigate ngs Review View Help TT Normal No Spacing Heading 1 Head Paragraph Styles 5. You might consider leasing your vehicle. The lease agreement would consider: Term: 4 years Monthly payments: $500.00 Security deposit: $629.00 Delivery charge: $440.00 Kilometer allowance: 20 000/year ($0.20/km for each additional kilometre) The residual value (the price of the car after the lease) at the end of the lease term is $8000.00 a) How much will it cost to lease the vehicle over a 4 year term? Assume you return the vehicle in good condition having driven 105, 000 km. (4) marks) b) If you purchase the vehicle at the end of the lease term, how much will you have paid for it? If you buy the vehicle at the end of your lease, your security deposit is returned and you are not required to pay if you go over your kilometre allowance. (2 marks)
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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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