Monthly loan payments Tim Smith is shopping for a used car. He has found one<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:o ffice" />

priced at $4,500. The dealer has told Tim that if he can come up with a down payment

of $500, the dealer will finance the balance of the price at a 12% annual rate

over 2 years (24 months).

a. Assuming that Tim accepts the dealer�s offer, what will his monthly (end-ofmonth)

payment amount be? $182.74

b. Use a financial calculator or Equation 4.15a (found in footnote 9) to help you

figure out what Tim�s monthly payment would be if the dealer were willing to

finance the balance of the car price at a 9% annual rate.

Question 3 options: ps.55 four corners is an ibc company that sells delicious navajo tacos in the crossroads food court. part of their success can be attributed to the freshly fried indian bread that is used not only for the tacos, but also for dessert items. as demand grows the fry-bread process is becoming a bottleneck. operations management for the company is looking at two different process options to replace the highly manual process currently being used. option 1 (medium automation) would cost $175 to implement whereas option 2 (high automation) would cost $350. with option 1 the variable cost per fry bread produced would be $0.20. the variable cost for option 2 would be $0.09 per fry bread. at what volume (demand) of fry breads is the cost for the two options the same? (display your answer to two decimal places.)