1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
True [87]
2 years ago
9

Automobiles are often leased, and there are several terms unique to auto leases. Suppose you are considering leasing a car. The

price you and the dealer agree on for the car is $27,600. This is the base capitalized cost. Other costs that may be added to the capitalized cost price include the acquisition (bank) fee, insurance, or extended warranty. Assume these costs are $1,050. Capitalized cost reductions include any down payment, credit for a trade-in, or dealer rebate. Assume you make a down payment of $3,000 and there is no trade-in or rebate. If you drive 12,000 miles per year, the lease-end residual value for this car will be $17,000 after three years.The lease or "money" factor, which is the interest rate on the loan, is the APR of the loan divided by 2,400. The lease factor the dealer quotes you is .00265. The monthly lease payment consists of three parts: A depreciation fee, a finance fee, and sales tax. The depreciation fee is the net capitalization cost minus the residual value, divided by the term of the lease. The net capitalization cost is the cost of the car minus any cost reductions plus any additional costs. The finance fee is the net capitalization cost plus the residual, times the money factor, and the monthly sales tax is the depreciation payment plus the finance fee, times the tax rate.
a. What APR is the dealer quoting you? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is your monthly lease payment for a 36-month lease if the sales tax is 7 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
kotegsom [21]2 years ago
3 0

Answer:

a. 6.36%

b. $378.02

Explanation:

a. The computation of Annual percentage rate is shown below:-

Annual percentage rate = Lease factor × 2,400

= 0.00265 × 2,400

= 6.36%

b. For computation of monthly lease payment first we need to find out the depreciation charge, finance charge and tax which is shown below:-

Depreciation charge = (Base cost + Other cost - Down payment - Residual value) ÷ Number of lease payment

= ($27,600 + $1,050 - $3,000 - $17,000) ÷ 36

= $8,650 ÷ 36

= $240.27

Finance charge = (Base cost + Other cost - Down payment - Residual value) × Lease factor

= ($27,600 + $1,050 - $3,000 - $17,000) × 0.00265

= $42,650 × 0.00265

= $113.0225

now,

Tax = (Depreciation charge + Finance charge) × Tax rate

= ($240.27 + $113.0225) × 7%

= $353.2925 × 7%

= $24.73

Monthly Lease payment = Depreciation charge + Finance charge + Tax

= $240.27 + $113.0225 + $24.73

= $378.02

You might be interested in
On January 10, 2017, a man in Lebanon, Virginia, frustrated with the DMV bureaucracy, paid his DMV bill with 300,000 pennies tha
4vir4ik [10]

Answer:

the requirements are missing, so I looked for them:

  • a. Money supply.
  • b. Deposits.
  • c. Total reserves.
  • d. Excess reserves.

a. $0

the coins are part of M1 money supply already, so it will not change it.

b. $3,000.

the DMV should deposit the pennies in their account account, therefore, total bank deposits will increase by 300,000¢ /100 = $3,000

c. $3,000

since bank deposits increase by $3,000, total reserves also increase by $3,000

d. $2,790

excess reserves = total reserves - required reserve ratio = $3,000 - ($3,000 x 7%) = $2,790

3 0
2 years ago
When people conduct business without regard for government controls on price or quantity is called a black market. Please select
Natalija [7]

The statement ‘When people conduct business without regard for government controls on price or quantity is called a black market’ is true. The transactions made in the black market is illegal because it does not follow the set of rules by the government.

7 0
3 years ago
Leaping Deer Company purchased a tractor at a cost of $240,000. The tractor has an estimated residual value of $40,000 and an es
trapecia [35]

Answer:

Units of production method: $76,820

Explanation:

The three most common depreciation methods are: straight line, double-declining, and units of production. We will calculate the depreciation expense for each.

Straight line method:

Depreciable amount= cost - residual value

                                 = 240,000 - 40,000

                                = 200,000

Depreciation by year = depreciable amount / years of useful life

                                   = 200,000 / 8

                                   = 25,000

Double declining method

Depreciation per year = depreciable amount x (2 / useful life in years)

                      = 200,000 x (2 / 8)

                      = 50,000

Units of production method

Depreciation per unit  = depreciable amount / hours of operation

                                     = 200,000 / 12,000

                                     = 16.7

Total depreciation = depreciation per unit x actual units of operation

                              = 16.7 x 2,400 + 2,200

                              = 16.7 x 4,600

                              = 76.820

Therefore, the units of production method results in the highest depreciation expense among the three.

   

3 0
3 years ago
Following are the accounts and balances from the adjusted trial balance of stark company
Lorico [155]

Answer:

                                STARK COMPANY  

                             INCOME STATEMENT  

                FOR THE YEAR ENDED DECEMBER 31  

PARTICULARS                                 AMOUNT $

Service Revenue                               20,000

<u>Expenses</u>

Supplies expense          200  

Interest expense            500  

Insurance expense        1,800

Utilities expense            1,300

Depreciation expense   2,000

Wages expense             <u>7,500</u>

Total expenses                                  <u>13,300</u>

Net profit                                            <u>6,700</u>

                            STARK COMPANY  

                 STATEMENT OF RETAINED EARNINGS  

                  FOR THE YEAR ENDED DECEMBER 31

                                                                                       Amount $

Retained earnings December 31 prior year end            14,800

Add- Net income           6,700

Less- Dividends             3,000                                           <u>3,700</u>

Retained earnings, December 31 Current year end     <u>18,500</u>

3.                                          STARK COMPANY  

            BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31

Current Assets

Cash                               10,000

Accounts receivable      4,000  

Office supplies               800  

Prepaid insurance          <u>2,500</u>

Total current asset                           17,300

Non Current Assets

Buildings                            40,000

Less- Accumulated dep.    <u>15,000</u>  

Total Non Current Assets                <u>25,000</u>

Total Assets                                       <u>42,300 </u>

Liabilities

Current liabilities

Accounts payable     1,500  

Interest payable        100  

Notes payable           11,000  

Unearned revenue    800  

Wages payable          <u>400 </u>

Total Current liabilities                 13,800

Long term liabilities

Common stock      10,000

Retained earnings 18,500             <u>28,500</u>

Total liabilities and capital           <u>42,300</u>

7 0
3 years ago
Managers at Umbrella Corporation, a firm in East Asia, want to make their company a global leader in business process outsourcin
dezoksy [38]

The should the Umbrella managers look for as they decide where to locate their BPO facilities is an abundance of well-educated English speakers.

<h3>What does well educated mean?</h3>

The term simply implies that a  person of this kind of nature  has a lot of knowledge about a lot of subjects, usually due to the fact that they have studied at college or university.

The speakers and writers of English who have been educated are known to be very verse in English and should be the one employed by this firm.

See options below

Multiple Choice

large, undeveloped plots of land for greenfield projects

many uneducated workers who are highly trainable

plentiful natural resources

an abundance of well-educated English speakers

Learn more about  English speakers from

brainly.com/question/26157848

8 0
2 years ago
Other questions:
  • Identify barriers to partnership working
    14·1 answer
  • Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wa
    13·1 answer
  • The term full employment implies an unemployment rate of:
    7·1 answer
  • A consumer products company competes around the world primarily by customizing or differentiating its products to meet unique lo
    12·1 answer
  • Real estate is an attractive investment because it
    12·1 answer
  • Software that manages "back office" functions such as billing, production, inventory management, and human resources management
    7·1 answer
  • Terrence Corporation plans to sell 35,000 units of its single product in March. The company has 2,200 units in its March 1 finis
    7·1 answer
  • Kern Company deposited $1,000 in the bank on January 1, 2017, earning 8% interest. Kern Company withdraws the deposit plus accum
    6·1 answer
  • Data for Corporation and its two divisions, Domestic and Foreign, appear below:
    11·1 answer
  • Louisa is interested in investing in the stock of a corporation that pays regular dividends and generates consistent growth, so
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!