Solve the Problem. -Gina Is Buying a Used Car That Has an Advertised

question 99

Multiple Choice

Solve the problem.
-Gina is buying a used car that has an advertised price of $3,500. She is buying the car on credit and must make a down payment of $900 and 30 monthly payments of $114. What is the total cost of the
Car?

• A)$4,320
• B)$4,206
• C)$4,434
• D)$3,614

---

Definitions:

Direct Cost

Expenses that can be directly attributed to the production of specific goods or services, like raw materials and labor.

Initial Direct Costs

Expenses directly associated with acquiring or originating a loan or insurance policy, which may include processing and sales commissions.

Revenue Recognized

The process of recording revenues in the financial statements when they are earned, which may not coincide with when the cash is received.

Collectibility

The likelihood or ability of a company to collect its accounts receivable from customers.