Schlitz bought some new material which cost $1,000 and which had credit terms of 1/10 net 30. Schlitz paid for this material on the 5th day after the date of sale. What is the cost of giving up the cash discount?

Schlitz bought some new material which cost $1,000 and which had credit terms of 1/10 net 30. Schlitz paid for this material on the 5th day after the date of sale. What is the cost of giving up the cash discount?

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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2. Jason Bradley decided to buy a home for $271,000. His bank requires a 25% down payment. His attorney, has notified Jason that besides the 25% down payment there will be the following additional costs: Recording of the deed $266.00 A credit and appraisal report 1521.00 Preparation of appropriate documents 444.00 In addition, there will be a transfer tax of 1.5% of the purchase price and a loan origination fee of 3% of the mortgage amount. Assume a 30-year mortgage at a rate of 9.5%. a. What is the initial amount of cash Jason will need? (Do not round intermediate calculations. Round your answer to the nearest cent.) b. What is his monthly payment? c. What is the total cost of interest over the life of the mortgage? (Use the amortization worksheet in the financial calculator.
Hisham purchased a Washing machine priced at RO 380. He paid 45 RO down and will make 15 payments at RO 25 each. Find the total finance charge
Jason Searcy buys a condominium for $96,200. He makes a 5% down payment, and pays these closing costs: property survey, $315; insect inspection, $190; legal fees, $525; and title insurance, $225. a. What is the down payment amount? b. What are the total closing costs? c. What is the total cash amount needed to buy the condominium?
Mr. Smith did not pay his full credit card balance on June 5th, the due date each month for payment. The unpaid balance was $800. He purchased a new washing machine on credit on June 30 for $1,000. If interest is charged at a rate of 18%, compounded daily, what would be the interest charge on his next credit card bill using the average daily balance method? a) $26.63 b) $21.77 c) $14.79 d) $13.32
Arnold Brown has a Visa Card with an annual percentage rate of 19.2%. The unpaid balance for his June billing cycle is $1,147.56. During the billing cycle he purchased a printer cartridge for $47.78, books for $281.37 and gasoline for $16.65. He made a payment of $1,200. If the account applies the unpaid balance method, what are the finance charge and the new balance? The finance charge is $. The new balance is $ (Round to the nearest cent as needed.)
Use the unpaid balance method to calculate the finance charge on Joanna's credit account if last month's balance was $1,350, she made a payment of $375, she bought hiking boots for $120, and she returned a jacket for $140. Assume an annual interest rate of 21%.
Sam bought a ring for $2,000 from Zales. He must pay at 6% sales tax and 9% excise tax. Since the Jeweler is shipping the ring, Sam must also pay a $20 shipping charge. What is the total purchase of Sam's ring?
Donald bought a new hot tub today from Situation Hot Tubs. What is the present value of the cash flows associated with this transaction if the discount rate is 8.00 percent, he will receive a rebate of $608.00 from Situation Hot Tubs in 3 years, and he will pay $3,921.00 to Situation Hot Tubs in 5 years? Note: the correct answer is less than zero. O $-3151.22(plus or minus 10$) O $-2254.77(plus or minus 10$) O $-2060.57(plus or minus 10$) O $-2185.92(plus or minus 10$) O None of the above has plus or minus $10 to correct answer
10) Furniture Co. owed $880.00 for merchandise plus $20.00 for insurance. The bill was due on May 6 and the owner found he was unable to pay it. To keep a good credit rating, he decided to borrow the necessary amount from a bank that charged 9% discount. The maturity date for the loan was July 5. a) How much must he repay the bank? b) What was the cost of borrowing?
CNBC reported that one in five consumers who purchase bitcoin do so using their credit card. Melissa Gamez purchased a used RV with 19,300 miles for $47,200. Originally the RV sold for $71,500 with a residual value of $20,300. After subtracting the residual value, depreciation allowance per mile was $0.89. How much was Melissa's purchase price over or below the book value? Note: Input the amount as positive value. Purchase price was the book value by Does she have any equity that might assist her with purchasing bitcoin? Yes No
Complete an INCOME STATEMENT for Perez Pizza for the month ending January 31, 2020. They sold $15 100 in pizza slices (which cost them $8 000) and sold $37 000 worth of full pizza’s (which cost them $23 000). He had to pay $5 600 in wages, spent $2300 on a computer, paid $80 for his phone services and $700 for utilities. He also had to pay $1500 in interest expense on his bank loan.
A pawn shop owner buys a watch for 50$ and then sells it for 105$. What percent profit did the owner make on the sale of the watch?

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