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irina1246 [14]
2 years ago
5

Charles is going to purchase a new car that has a list price of $21,450. He is planning on trading in his good-condition 2004 Do

dge Neon and financing the rest of the cost over three years, paying monthly. His finance plan has an interest rate of 12. 28%, compounded monthly. Charles will also be responsible for 6. 88% sales tax, a $1,089 vehicle registration fee, and a $124 documentation fee. If the dealer gives Charles 80% of the listed trade-in price on his car, once the financing is paid off, what percent of the total amount paid will the interest be? (Consider the trade-in to be a reduction in the amount paid. ).
Business
1 answer:
mash [69]2 years ago
5 0

The Interest rate is the rate that is charged by the lender for the use of his money.

The percent of the total amount paid by Charles would be the on the interest of 16.70%.

<h3>What is the interest rate?</h3>

The interest rate is the amount of interest that is due per period, as a quotient of the amount deposited, or borrowed.

The amount of interest depends upon the sum of the principal, and it can vary by the amount of money lent or deposited.

<u>Computation </u><u>of the </u><u>rate </u><u>of </u><u>interest</u><u>:</u>

Given,

List Price = $21,450,

Interest Rate on the finance plan = 12.28%,

Monthly Interest rate:

\dfrac{12.28\%}{12} = 1.023\%

Sales Tax Rate = 6.88%

n = 12 \text{Months}\times3\text{Years}\\n=36 \text{Months}

Registration and documentation fee = $1,213 ($1,089 +$124)

Then,

The amount after-tax on selling neon 2004 is:

 

=\$6,591\times80\% \times ( 1 - 6.88\%) \\\\= \$4,910

Then the total amount paid for a new car is:

\text{Amount Paid For a New Car}= \text{List Price+ Documentation Fee + Registration Fee}\\\\\\\text{Amount Paid For a New Car}=\$ 21,450 +\$ 1,089 + \$$124\\\\\\\text{Amount Paid For a New Car}= \$22,663

And, The total amount gets from the finance plan:

\text{Net Amount Paid For a New Car - Amount After Tax}\\\\\\ \$ 22,663 - \$4,910 = \$17,753

so, Present Value = $17,753

Now, apply the given values in the formula of annuity, we get the monthly payment:

\text{A} =\text{PV}\times {1- (1+i)^n }}\\\\\text{A}  = \$592

Where A = Annuity

Then, The total repayment in Charles finance plan would be:

\$592\times36 = \$21,312

The total interest expenses would be:

\text{Total repayment - Financing Amount} \\\\ \$21,312 - \$17,753 = \$3,559

Therefore, the percentage of total interest expenses in the amount paid is :

\dfrac{3,559}{21,312}= 16.70\%

Hence, The rate of interest would be 16.70%.

Learn more about the interest rate, refer to:

brainly.com/question/4626564

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Mapleview Inc. has the following budgeted sales:
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Answer:

Total cash= $265,000

Explanation:

Giving the following information:

Sales:

July $200,000

August $300,000

September $250,000.

40% of the sales are for cash, and 60 percent are on credit. For the credit sales, 50 percent are collected in the month of sale and 50 percent the next month.

We need to determine the cash collection for September:

Cash collection:

Sales in cash September= 250,000*0.4= 100,000

Sales on account September= (250,000*0.6)*0.5= 75,000

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7 0
3 years ago
Jack's Corp. has $5 billion is total assets, and its tax rate is 40%. Its basic earnings power (BEP) ratio is 12%, and its retur
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Based on the information given Jack's times-interest earned (TIE) ratio is 3.28.

<h3>Times-interest earned (TIE) ratio is 3.28.</h3>

BEP = EBIT ÷ Total Assets

12% = EBIT ÷ $18 billion

EBIT = 12% × $5 billion

EBIT= $0.6 billion

ROA = Net Income ÷ Total Assets

5% = Net Income ÷ $5 billion

Net Income = 5% × $5 billion

Net income= $0.25 billion

Earning before tax:

Earning before tax= Net income ÷ (1 - tax)

Earning before tax= $0.25 ÷ (1 - 0.40)

Earning before tax= $0.25 ÷ 0.60

Earning before tax= $0.417 billion

Interest Expense:

Interest Expense= EBIT - EBT

Interest Expense= $0.6 billion - $0.417billion

Interest Expense= $0.183 billion

Times interest earned ratio:

Times interest earned ratio= EBIT ÷ Interest expense

Times interest earned ratio= $0.6 billion ÷ $0.183 billion

Times interest earned ratio= 3.28

Inconclusion Jack's times-interest earned (TIE) ratio is 3.28.

Learn more about  times-interest earned (TIE) ratio here:brainly.com/question/17150434

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2 years ago
Purchases$111,000 Freight-in 3,100 Sales 185,000 Sales returns 6,000 Purchases returns 4,500 In addition, the controller is awar
ivolga24 [154]

Answer:

Closing Stock = <u>38000 </u>

Explanation:

Net Sales = COGS + Gross Profit

  • <u>Net sales</u> = sales - sales return = 185000 - 6000 = 179000
  • <u>Gross Profit</u> = 60% of sales (as per gross profit ratio)

       = 60% of 179000 = 107400

  • <u>COGS </u>= Opening Stock + Net Purchase + direct expenses - Closing Stock

* <u>Net purchase</u> = Purchase - purchase return = 111000 - 4500 = 106500

*<u>Direct Expense</u> = Freight Inwards = 3100

Putting all values in formula :- Net Sales = COGS + Gross Profit

179000 = (0 + 106500 + 3100 - closing stock) + 107400

179000 = 106500 + 3100 + 107400 - closing stock

179000 = 217000 - closing stock

closing stock = 217000 - 179000

closing stock = 38000

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3 years ago
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Answer:

Mental states selling

Explanation:

Mental states selling, or the formula approach to personal selling, assumes that the buying process for most  buyers is essentially identical and that buyers can be led through certain mental states, or steps, in the buying  process.   Relies on a structured sales presentation just like the stimulus response.  These mental states includes (AIDS) attention, interest, desire, and action

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