MM255 PROJECT 5 Rev 11.2011

You must show your work on all problems.  You may type your answer right into this document.

Total points for project:  45 points.

 

Projects must be submitted as a Microsoft Word document and uploaded to the Drop Box for Unit 5.

All Projects are due by Tuesday at 11:59 PM ET of the assigned Unit.

NOTE: Project problems should not be posted to the Discussion threads. Questions on the project problems should be addressed to the instructor by sending an email or by attending office hours.

Part I.   Basic Computations

 

1.       The Morrison family bought a car for $24,000 which was financed at $600 per month for 40 months.    The down payment was $5000.

 

a.       What is the Installment Price? (5 Points)

Answer: $29,000      40*$600=$24,000     $24,000+$5,000=$29,000

 

 

b.       What is the financial charge and amount financed? (5 Points)

Answer: Finance Charge=29000-24000=$5000

            Amount Financed=24000-5000=$19000
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