It sputtered and squeaked and with a small hesitation followed by an abbreviated lunge, it was finally over: Ol’ Reliable, the car Jamie Lee had driven since she first earned her driver’s license at the age of 17, completed its last mile. Thirteen years and 140,000 miles later, it was time for a new vehicle.
After skimming the Sunday newspaper and browsing the online advertisements, Jamie Lee was ready to visit car dealers to see what vehicles would interest her. She was unsure if she would purchase a car brand new, used, finance with a down payment, or lease. "No money down and only $233 a month," Jamie Lee read, "with approved credit." Sounded like an offer she would be interested in. Jamie Lee knew she had a good credit rating as she made sure she paid all of her bills on time each month, and kept a close eye on her credit score ever since she was the victim of identity theft several years ago. The more she thought about the brand new car, the more excited she became. That new car fit her personality perfectly!
As Jamie Lee inquired about the advertised vehicle with the new car salesperson, her excitement quickly turned to dismay. The automobile advertised was available for $233 a month with no money down, based on approved credit, but Jamie Lee unexpectedly found that there were further qualifications in order to get the advertised price. The salesman explained that the information in the fine print of the newspaper advertisement stated that the price was based on all of the following criteria: being active in the military, a college graduate within the last three months, a current lessee of the automobile company, and having a top tier credit score, which he noted was above 800. If Jamie Lee did not meet all of the qualifications, she would not receive the price advertised in the promotion. But, he noted, he could get her in that vehicle, but it would cost her an additional $125 per month. Two hundred and seventy-five dollars was the maximum Jamie budgeted for a monthly payment. This vehicle was outside of her financial plan.
Jamie Lee had to start over from scratch. She decided that she must fully research the vehicle purchase process before browsing at another dealership. She felt she was getting caught up in the moment and vowed to do her research before speaking with another salesperson.
Complete the table below to compare the costs of buying and leasing a vehicle. Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories. See below for the necessary data.
Research for Nissan Versa Sedan 2016
*4 speed automatic
*Air conditioning
*Bluetooth® hands-free phone system
Credit
Purchase Lease
Total price of car $16,125.00 Total price of car $16,125.00
Down payment (-) $730.00 Acquisition fee (+) $665.00
Amount financed $15,395.00 Adjusted capitalized cost $16,790.00
Length of time 60
MONTHS Length of time 36
MONTHS
Interest rate 3.68% Security deposit $320.00
Monthly payment $272.00 Monthly payment $313.00
Savings account interest earned rate = 1.05%
Estimated value of car at end of loan - $5,400
www. nissanusa. com
Jamie Lee intends to use the car for at least five years before selling or trading it for a small SUV.
Note that there is a $500 rebate offer for cash purchase.
The tax is calculated using the Total cost of vehicle.
Total cost of vehicle $16,125.00
Tax [3%]
Tags and registration
(delivery/set up fees) $66.00
QUESTIONS:
1) total vehicle costs, including sales tax
2) down payment (or full amount if paying in cash)
3) monthly loan payment
4) number of months in the term loan
5) total of loan payments
OPPORTUNITY COST OF DOWN PAYMENT (OR TOTAL COST OF THE VEHICLE IF BOUGHT FOR CASH)
1) down payment = 730.00
2) number of years of financing/ownership
3) interest rate funds could earn
4) less: estimatted value of vehicle at end of loan term/ownership
LEASE COSTS
1) secruity deposit
2) monthly lease payment
3) number of months to lease
4) total
5) opportunity cost of security deposit
6) security deposit
7) number of years
8) interest rate funds could earn
9) end-of-lease charges (if applicable)
Answers: 2
Another question on Business
Business, 21.06.2019 16:10
Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product bold. labor costs will go from $7.91 to $8.41 per unit. in addition, their material costs have fallen from $13.66 to $12.66. assume all period costs as reported on baldwin's income statement remain the same. if baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product bold would need to be sold next round to break even on the product?
Answers: 2
Business, 22.06.2019 06:50
On january 1, vermont corporation had 40,000 shares of $10 par value common stock issued and outstanding. all 40,000 shares has been issued in a prior period at $20.00 per share. on february 1, vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on march 1. the journal entry to record the purchase of the treasury shares on february 1 would include a credit to treasury stock for $90,000 debit to treasury stock for $90,000 credit to a gain account for $112,500 debit to a loss account for $112,500
Answers: 3
Business, 23.06.2019 17:00
Two firms, a and b, each currently emit 100 tons of chemicals into the air. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution emitted into the air. the government gives each firm 40 pollution permits, which it can either use or sell to the other firm. it costs firm a $200 for each ton of pollution that it eliminates before it is emitted into the air, and it costs firm b $100 for each ton of pollution that it eliminates before it is emitted into the air. after the two firms buy or sell pollution permits from each other, we would expect that firm a will emit a. 100 fewer tons of pollution into the air, and firm b will emit 20 fewer tons of pollution into the air. b. 20 more tons of pollution into the air, and firm b will emit 100 fewer tons of pollution into the air. c. 50 fewer tons of pollution into the air, and firm b will emit 50 fewer tons of pollution into the air. d. 20 fewer tons of pollution into the air, and firm b will emit 100 fewer tons of pollution into the air.
Answers: 3
Business, 23.06.2019 19:00
2. taxes paid for a given income level rosa is getting ready to do her taxes. she is single and lives in denver. rosa earned $60,000 in taxable income in 2015. she reviews the following table, which shows the irs tax rates for a single taxpayer in 2015. on annual taxable the tax rate (percent) up to $9,225 10.0 from $9,225 to $37,450 15.0 from $37,450 to $90,750 25.0 from $90,750 to $189,300 28.0 from $189,300 to $411,500 33.0 from $411,500 to $413,200 35.0 over $413,200 39.6 based on the irs table, rosa calculates that her marginal tax rate is when her annual taxable income is $60,000. rosa calculates that she owes in income taxes for 2015. rosa then calculates that her average tax rate is , based on the annual income level and the amount of taxes she owes for 2015. after figuring out what she owes in taxes in 2015, rosa decides to ask an accountant for tax advice. the accountant claims that he has found a legal way to shelter $4,000 of taxable income from the federal government. the maximum amount that rosa is willing to pay to learn this strategy and reduce her taxable income by $4,000 is . (hint: sheltering some income means finding a legal way to avoid being charged income tax on that income. for example, someone who has $50,000 in taxable income and shelters $10,000 pays income tax on only $40,000.)
Answers: 3
You know the right answer?
It sputtered and squeaked and with a small hesitation followed by an abbreviated lunge, it was final...
Questions
Chemistry, 28.08.2019 07:30
History, 28.08.2019 07:30
Geography, 28.08.2019 07:30
Physics, 28.08.2019 07:30
English, 28.08.2019 07:30
Social Studies, 28.08.2019 07:30
History, 28.08.2019 07:30
Mathematics, 28.08.2019 07:30
English, 28.08.2019 07:30
Mathematics, 28.08.2019 07:30
English, 28.08.2019 07:30
