1. According to Table 7.1, how much should be budgeted per year if a compact car is driven 12,000 miles a year? Round to the nearest dollar. 2. A car has an invoice price of $26,600. If the sticker price is marked up 21%, what is the sticker price? Marcus has agreed to purchase a new car for $28,400 with a 15% down payment. He will finance the balance at 8%(12) for 5 years. His state has no sales tax. 3. How much does he need for the down payment?
1. According to Table 7.1, how much should be budgeted per year if a compact car is driven 12,000 miles a year? Round to the nearest dollar. 2. A car has an invoice price of $26,600. If the sticker price is marked up 21%, what is the sticker price? Marcus has agreed to purchase a new car for $28,400 with a 15% down payment. He will finance the balance at 8%(12) for 5 years. His state has no sales tax. 3. How much does he need for the down payment?
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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Transcribed Image Text:Consumer Math
1. According to Table 7.1, how much should be budgeted per year if a compact car is
driven 12,000 miles a year? Round to the nearest dollar.
2. A car has an invoice price of $26,600. If the sticker price is marked up 21%, what
is the sticker price?
Marcus has agreed to purchase a new car for $28,400 with a 15% down payment. He will
finance the balance at 8%(12) for 5 years. His state has no sales tax.
3. How much does he need for the down payment?
4. How much is his monthly payment?
5. Marcus has a savings account that pays 5.5%(12), If he had saved $216 a month
for the past 3 years, how much would he have to put toward the cost of the car?
*6. For the following vehicle, find the amount to be financed and the monthly payment.
The sales tax, title, registration and fees will be financed.
Sticker price: $30,440
Discount offer: 6%
Trade-in: $6000
Title, registration and fees: $125
State sales tax: 5%
Finance charge: 6.4%(12) for 5 years
Finance Formulas
Savings-payment beginning of period
Loans-payment end of period
Amount saved for
$R
Payment per period Amount borrowed for
to save $S
Payment per period
to borrow $A,
per period
$R per period
i
R = A 1– (1 + i)"
(1+i)" -
1 – (1 + i)"
S. = R
R = ST1 + i)" – 1
A = R
Table 7.1
Costs Per Mile of Owning
and Operating an Automobile
Size
Total costs per mile
Compact
37.8¢
Midsize/minivan
45.3¢
Full-size
64.7¢
Pickups, vans, and SUVS
50.3¢
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