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Posted on Sep 28, 2024

2. the car i chose is kia forte 2019, the msrp is $17,790. 2. For the car you selected, write the year, make, model, and

2. the car i chose is kia forte 2019, the msrp is $17,790.

2. For the car you selected, write the year, make, model, and MSRP in the Vehicle Being Purchased box in the left side of the contract. 3. [0.5 pt) Suppose you are able to negotiate a selling price of 95% of the MSRP. Write the selling price into the Selling Price line of the contract. You may carry this value down to the Price After Equipment Change line. Work* 0.25 Answer 0.25 4. Assume you have no trade-in. Write your selling price in the Taxable Total line of the contract. 5. [0.5 pt) Calculate the sales tax and write this amount in the Sales Tax line of the contract. In the state of Arizona, the tax rate is different depending on where you purchase your car. Currently the Arizona sales tax rate is 5.6%. Maricopa County adds on 0.7% sales tax to support roads and jails. Phoenix has a city tax of 2.3%. That's a total of 8.6% if you purchase your car in the city of Phoenix. Assume we're buying the car in the city of Phoenix, so use the 8.6% sales tax rate. Work* 0.25 Answer 0.25 6. [1 pt) The license fee is 2.8% of the value of your car. The value of your car is 60% of the MSRP (not the purchase price!). Write the license fee in the License Fee line of the contract. Ex: If the MSRP is $25,000, the value of your car would be: $25,000 x 0.60 = $15,000 Use this value to calculate the license fee. This value is NOT your license fee. Work* 0.5 Answer 0.5 7. Add the title service fee, license fee, sales tax, and purchase price to obtain the total due. Write this amount in the Total Due line of the contract. 8. [1 pt) You plan to make a 10% down payment. Write your down payment in the Total Cash Down box. Work* Answer 0.5 0.5 9. Calculate the balance due and write this value in the Balance Due line of the contract. Now we will move on to the financing. Financing: Write the financing information under the FEDERAL TRUTH-IN-LENDING DISCLOSURES part of the contract. 10. Indicate the amount borrowed (balance due) in the Amount Financed box. 11. Assume you can secure a loan at 3.9% for 36 months. Write these values in the Annual Percentage Rate and Number of Payments boxes. 12. [5 pts) Calculate your monthly payment and write this value in the Amount of Payments box. Formula 1 Work 2 Answer 2 13. [2 pts) Find the total amount of interest paid during the loan and write the appropriate information in the total of Payments and Total Finance Charge boxes. Finance: Written Problem Set 3 Directions: 1. Solve the following problems. Hand write your solutions and explanations on your own paper. Do not write answers on this page. 2. Show your work. No explanations are needed for this written problem set. 3. You must write your name on the top right of the paper you turn in. 4. You must write the title of this problem set on the top of your paper. 5. Turn in your solutions following the directions in the assignment information on Canvas. RETAIL ORDER FOR A MOTOR VEHICLE Steps 1-13.3.9% for 36 months Purchaser's Name Vehide Being Purchased Address Make Vehicle Identification Number SELLING PRICE Dealer Installed Accessories Vehide Being Traded-In Make Vehicle Identification Number KBB Value PRICE AFTER EQUIPMENT CHANGE LESS TRADE ALLOWANCE FACTORY WARRANTY: Any warranty on any new vehicle or used vehicle still subject to a manufacturer's warranty is that made by the manufacturer only. The seller hereby disclaims all warranties, either express or implied, including any implied warranty or merchantability or fitness for a particular purpose. TAXABLE TOTAL FEDERAL TRUTH-IN-LENDING DISCLOSURES SALES TAX Amount Financed Annual Percentage LICENSE FEE Number of Payments TITLE SERVICE FEE 299 00 Total of Payments TOTAL DUE Amount of Payments Total Finance Charge TOTAL CASH DOWN The information you see on the window form for this vehicle is part of this contract. Information in the window form overrides any contrary provisions in the contract of sale. BALANCE DUE Liability insurance coverage for bodily injury and property damage caused by others not included. Purchaser's Signature *Work showing how you arrived at the correct answer. Finance Written Problem Set 3 2. For the car you selected, write the year, make, model, and MSRP in the Vehicle Being Purchased box in the left side of the contract. 3. [0.5 pt) Suppose you are able to negotiate a selling price of 95% of the MSRP. Write the selling price into the Selling Price line of the contract. You may carry this value down to the Price After Equipment Change line. Work* 0.25 Answer 0.25 4. Assume you have no trade-in. Write your selling price in the Taxable Total line of the contract. 5. [0.5 pt) Calculate the sales tax and write this amount in the Sales Tax line of the contract. In the state of Arizona, the tax rate is different depending on where you purchase your car. Currently the Arizona sales tax rate is 5.6%. Maricopa County adds on 0.7% sales tax to support roads and jails. Phoenix has a city tax of 2.3%. That's a total of 8.6% if you purchase your car in the city of Phoenix. Assume we're buying the car in the city of Phoenix, so use the 8.6% sales tax rate. Work* 0.25 Answer 0.25 6. [1 pt) The license fee is 2.8% of the value of your car. The value of your car is 60% of the MSRP (not the purchase price!). Write the license fee in the License Fee line of the contract. Ex: If the MSRP is $25,000, the value of your car would be: $25,000 x 0.60 = $15,000 Use this value to calculate the license fee. This value is NOT your license fee. Work* 0.5 Answer 0.5 7. Add the title service fee, license fee, sales tax, and purchase price to obtain the total due. Write this amount in the Total Due line of the contract. 8. [1 pt) You plan to make a 10% down payment. Write your down payment in the Total Cash Down box. Work* Answer 0.5 0.5 9. Calculate the balance due and write this value in the Balance Due line of the contract. Now we will move on to the financing. Financing: Write the financing information under the FEDERAL TRUTH-IN-LENDING DISCLOSURES part of the contract. 10. Indicate the amount borrowed (balance due) in the Amount Financed box. 11. Assume you can secure a loan at 3.9% for 36 months. Write these values in the Annual Percentage Rate and Number of Payments boxes. 12. [5 pts) Calculate your monthly payment and write this value in the Amount of Payments box. Formula 1 Work 2 Answer 2 13. [2 pts) Find the total amount of interest paid during the loan and write the appropriate information in the total of Payments and Total Finance Charge boxes. Finance: Written Problem Set 3 Directions: 1. Solve the following problems. Hand write your solutions and explanations on your own paper. Do not write answers on this page. 2. Show your work. No explanations are needed for this written problem set. 3. You must write your name on the top right of the paper you turn in. 4. You must write the title of this problem set on the top of your paper. 5. Turn in your solutions following the directions in the assignment information on Canvas. RETAIL ORDER FOR A MOTOR VEHICLE Steps 1-13.3.9% for 36 months Purchaser's Name Vehide Being Purchased Address Make Vehicle Identification Number SELLING PRICE Dealer Installed Accessories Vehide Being Traded-In Make Vehicle Identification Number KBB Value PRICE AFTER EQUIPMENT CHANGE LESS TRADE ALLOWANCE FACTORY WARRANTY: Any warranty on any new vehicle or used vehicle still subject to a manufacturer's warranty is that made by the manufacturer only. The seller hereby disclaims all warranties, either express or implied, including any implied warranty or merchantability or fitness for a particular purpose. TAXABLE TOTAL FEDERAL TRUTH-IN-LENDING DISCLOSURES SALES TAX Amount Financed Annual Percentage LICENSE FEE Number of Payments TITLE SERVICE FEE 299 00 Total of Payments TOTAL DUE Amount of Payments Total Finance Charge TOTAL CASH DOWN The information you see on the window form for this vehicle is part of this contract. Information in the window form overrides any contrary provisions in the contract of sale. BALANCE DUE Liability insurance coverage for bodily injury and property damage caused by others not included. Purchaser's Signature *Work showing how you arrived at the correct answer. Finance Written Problem Set 3