2. Jesse is buying a new car. The base price is $27,940. Jesse has a down payment of $3500. Extra charges Delivery charge Freight Federal air conditioning tax a. What is the total vehicle price before taxes? $850 $495 $100 b. What is the total amount that Jesse will need to pay after taxes? Remember that new vehicles need to pay both PST (6%) and GST (5%). c. What is the total price of the car after taxes and less the down payment? (This is the amount of the loan Jesse needs)

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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2. Jesse is buying a new car. The base price is $27,940. Jesse has a down
payment of $3500.
Extra charges
$850
$495
Delivery charge
Freight
Federal air conditioning tax
a. What is the total vehicle price before taxes?
$100
b. What is the total amount that Jesse will need to pay after taxes?
Remember that new vehicles need to pay both PST (6%) and GST (5%).
c. What is the total price of the car after taxes and less the down payment?
(This is the amount of the loan Jesse needs)
d. Jesse pays for his new car with a personal loan from his bank. His loan is 5%
over 3 years. How much interest will Jesse pay? (Use an online loan
calculator to help you.)
e. What is the total cost of the car? (Remember to include the down
payment in the cost)
f. What are some things that Jesse could do to reduce amount he pays at
the end of the loan?
Transcribed Image Text:2. Jesse is buying a new car. The base price is $27,940. Jesse has a down payment of $3500. Extra charges $850 $495 Delivery charge Freight Federal air conditioning tax a. What is the total vehicle price before taxes? $100 b. What is the total amount that Jesse will need to pay after taxes? Remember that new vehicles need to pay both PST (6%) and GST (5%). c. What is the total price of the car after taxes and less the down payment? (This is the amount of the loan Jesse needs) d. Jesse pays for his new car with a personal loan from his bank. His loan is 5% over 3 years. How much interest will Jesse pay? (Use an online loan calculator to help you.) e. What is the total cost of the car? (Remember to include the down payment in the cost) f. What are some things that Jesse could do to reduce amount he pays at the end of the loan?
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