Purchase Solution

Interest and total cost

Not what you're looking for?

Ask Custom Question

Problem:

You buy a car with a down payment of $300 and payments of $200 per month for 3 years. If the interest rate is 12% compounded monthly what is the total cost of the car?

a. $5532.14
b. $6574.20
c. $6321.50
d. $8615.38
e. None of the above

Purchase this Solution
Solution Summary

This shows how to compute the total cost of a car bought with a given down payment and monthly payments.

Purchase this Solution
Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Operations Management

This quiz tests a student's knowledge about Operations Management

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

View More Free Quizzes
Related BrainMass Solutions

  • Borrowing Alternatives

    Question A) US public offering Total interest cost = $100 million x 8% per year x 7 years = $56 million Total after tax cost of borrowing = ($56 million + $900,000)*(1 - 34%) = $37,554,000 US private placement Total interest cost = $100 million

  • Cash Management using Baumol Model

    The Baumol Model C = square root of ( 2 x Total Demand during the period x Fixed Transaction Cost)/ Interest rate 1000 = square root of ( 2 x Total Demand during the period x Fixed Transaction Cost)/ 4% Or (Total Demand during the period x Fixed

  • Multiple choice

    that portion of total interest cost which would not have been incurred if expenditures for asset construction had not been made. The solution explains sime multiple choice questions relating to cost of land, cost of building and avoidable interest

  • Calculate the economic and accounting profit in the given case

    Total Revenue=$500,000 Wages and salaries=$400,000 Forgone salary=$80,000 Interest paid=$10,000 Forgone Rent=$10,000 Raw Material=$50,000 Other payments=$20,000 Forgone interest=$7,000 Total Revenue=$500000 Explicit cost include direct accounting

  • Interest and rate of cost

    This is a set of questions regarding interest and rates of cost.

  • Present Value of Annuity and Amorization

    , the solution calculates the cost of the stereo system and the total amount of interest paid.

  • Cost Equation

    104551 Cost Equation The short-run cost function of a company is given by the equation, TC=200+55q, where TC is the total cost and q is the total quantity of output, both measured in thousands.

  • Financing: Choosing between two plans

    Determine the total two-year interest cost under each plan. Which plan is less costly?

  • The price of the car

    Determine the interest on your loan, using the formula: â?¦interest = sale price*rate*time, (I = prt). 5. Determine the total cost of your loan, using the formula: â?¦Total cost = (sale price*rate)time + Sale Price 6.

  • lease the machine or buy it with bank financing?

    plus 12% interest X $1 million = $1,120,000 less tax benefit: $1 million depreciation + $120,000 interest expense X 35% tax bracket = $392,000 tax reduction total cost: $728,000 Total cost: $2,418,000 Lease: year 1: $1.2

View More Related Solutions