Use the Information for the Question(s)below

question 33

Multiple Choice

Use the information for the question(s) below.
You are in the process of purchasing a new automobile that will cost you $27,500.The dealership is offering you either a $2500 rebate (applied toward the purchase price) or 1.9% financing for 48 months (with payments made at the end of the month) .You have been pre-approved for an auto loan through your local credit union at an interest rate of 6.5% for 48 months.
-If you forgo the $2500 rebate and finance your new car through the dealership your monthly payments (with payments made at the end of the month) will be closest to:

• A)$520.
• B)$573.
• C)$595.
• D)$799.

Analyze the impact of government interventions, like price ceilings, on market surplus.

Understand the relationship between substitute goods and their impact on market dynamics.

Assess the implications of surplus and shortage conditions on market dynamics.

Understand the role and importance of forecasting in financial planning.

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Definitions:

Accounting Break-even Point

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Fixed Cost

are business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.

Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting wear and tear or obsolescence.