You Are Considering Purchasing a New Automobile That Will Cost

question 19

Multiple Choice

You are considering purchasing a new automobile that will cost you $28,000.The dealer offers you 4.9% APR financing for 60 months (with payments made at the end of the month) .Assuming you finance the entire $28,000 and finance through the dealer,your monthly payments will be closest to:

• A)$1454.
• B)$527.
• C)$467.
• D)$457.

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Definitions:

Credit Sales

Transactions where goods or services are provided to a customer with an agreement to pay at a later date.

Operating Expenses

Expenses related to the normal operations of a business, excluding the cost of goods sold.

Direct Labour Budget

A budget that forecasts the expense of direct labor needed to achieve manufacturing targets.

Labour Rate

The standard or actual cost paid per hour of labor, used in calculating the total cost of production or services.