After finding out that the dealer's cost of a VW was 11.7% lower than its sticker price of $17,350, Julia visited a local dealership, and was able to negotiate a price that left the dealer with a modest profit margin of 9.5% over the invoice price and have him agreed to honor a rebate coupon of $250 that she submitted. The dealer offered to finance 83% of the total cost at an APR of 9%% so she can pay off the auto loan in 4 years. Before signing the contract, Julia ordered a $300 optional stereo unit to be installed and other additional accessories at a cost of \$80.00. Title fees, License plate charges, and sale taxes would be paid later at the Registry of Motor Vehicles. 1. (5 pts) What is the total price (P) to be used in the auto loan formula? 2. (6 pts) How much would be the monthly payment for Julia? After Thanksgiving 2018, Jack Hirsh returned to his home to find that his TV-DVD unit was stolen. He bought this set for $950 in 2013. He was somehow relaxed, thinking that his good property insurance would replace the set rith a new one, but his insurance agent told him that according to the office records, the value of his set would have depreciated to zero by December, 2022, and therefore the insurance would have to pay less than the replacement value (RV) that he wished for. The insurance company would pay him the Actual Cash Value (ACV) of his set. If the CPI's for 2013, 2018 are 140.5, 161.2 respectively, Calculate: 3. (6 pts) The RV, which Jack would wish to receive. 4. ( 5 pts) The ACV, which the insurance would be willing to pay. 5. ( 2 pts) The difference between the two values. Harny Snow was injured in a car accident and had to spend 37 days in the hospital. His medical bill included a $7,532 in hospital charges plus a 16.6% of these charges for recuperative care. Given that there is a policy limit of $6,700 per claim; and a deductible of $7.50 per day of hospitalization, Calculate: 6. (6pts) How much his health insurance policy of 80:20 is going to pay, and 7. (4 pts) How much will he end up paying out of that claim? Sue has obtained a personal loan of $5000 at 13.25% simple interest for 4 years. She paid all the monthly paywents except the last five payments, which she wanted to pay all at once. 8. (4 pts) What would be the total of the last five regular payments that Sue was planning to pay? 9. (4 pts) How much would the bank wanted her to pay, reminding her that her loan contract carries a pre-payment penalty? 10. (5 pts) How much would the pre-payment penalty be? John' $ annual gross income is $120,000 but he has an exemption of $7,200, and total ductions of $10,800. Using the following Tax Table, Calculate: 11. (4 pts) John's taxable income. 12. (6 pts) John's Actual marginal tax rate
