After becoming a commercial pilot, Lorna Kao decides to purchase a Cessna 182 for $64,835. Assuming the sales tax is 5.9% of the purchase price, find each of the following. (a) What is the total cost, including sales tax?$ (b) If Lorna makes a down payment of 24% of the total cost, find the down payment.$ (c) Assuming Lorna finances the remaining cost at an annual interest rate of 7.25% for 10 years, find the monthly payment.$

After becoming a commercial pilot, Lorna Kao decides to purchase a Cessna 182 for $64,835. Assuming the sales tax is 5.9% of the purchase price, find each of the following. (a) What is the total cost, including sales tax?$ (b) If Lorna makes a down payment of 24% of the total cost, find the down payment.$ (c) Assuming Lorna finances the remaining cost at an annual interest rate of 7.25% for 10 years, find the monthly payment.$

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 45P

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Question

After becoming a commercial pilot, Lorna Kao decides to purchase a Cessna 182 for $64,835. Assuming the sales tax is 5.9% of the purchase price, find each of the following.

(a) What is the total cost, including sales tax?
$

(b) If Lorna makes a down payment of 24% of the total cost, find the down payment.
$

(c) Assuming Lorna finances the remaining cost at an annual interest rate of 7.25% for 10 years, find the monthly payment.
$

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