Part II: Markups and Markdowns A manufacturer produces ceiling fans at a cost of $38.25 per fan. During the summer months, it sells the fan in one of its retail outlets at a price of $55.00. However, during the fall and winter season, the manufacturer discounts its fans by 20% off the $55.00 list price. If you were to order 15 fans in the summer and 18 in the winter, what would be the total price paid?
Part III: Open/Closed End Credit It’s time to go shopping!
You grab your Best Purchase credit card, which has an annual interest rate of 18%. Assume that you have a previous charged balance of $285.76 (before interest has been applied) on the card.
On your shopping trip, you purchased three items: a Blu-ray player, two 4-GB flash drives, and a 19-inch flat-screen television. You purchase all the items on your credit card for a total of $352.18. When the bill comes at the end of the month you decide to pay all of the charges.
Answer the following questions, showing any needed calculations. (Round all your answers to nearest hundredth or cent.)
Part IV: Simple Interest (Applying Percentages, Decimals, and Fractions)
Student loans are a hot discussion when it comes to paying back not only the initial borrowed amount but interest on
top of the loan. Typical student loans do not start accumulating interest until after the student has been out of
school, usually one year.
Base the following that the individual has been out of school and is starting to look at the interest on a student loan.
Give an example of an amount of a realistic student loan for an individual that attended a university for at least 2
Research and find the current average interest rate for student loans. Be sure to reference the site(s) you chose
your interest rate.
Date Disbursed Type In-School Rate Repayment Rate
7/2010-6/2012 Stafford 6.80% 6.80%
PLUS 7.90% 7.90%
How much interest was charged at the end of the first day of the loan (assuming no payments have been made and interest accumulates at the end of the first day)?
Part V: Sales Tax Sales tax on the purchase of a vehicle is calculated on the net purchase price (which is the total purchase price minus the amount allowed by a dealer for any trade-in). The rate of tax for residents in Denver, CO is as follows: Colorado state tax: 2.90% Regional transportation district (RTD) tax: 1.20% Denver city tax: 3.62%
Using the information above, answer the following:
What is the total sales tax to be paid in 2002 on the purchase of a 2002 passenger vehicle with a sales price of $17,000 and a $2,000 trade-in allowance?
Part VI: Property Tax Which job should you take?
After completing your degree, you have a choice between 2 jobs.
Suppose that you do not have a preference in location and have been given the following offers:
—–The first position is in Pennsylvania, earning $50,000 a year. You found a starter duplex that you can purchase with the assessed value of $75,000. Property taxes average 2.975% of the purchase price. The state sales tax is 6% on purchases, but this does not apply to food and clothing. The state income tax is 3%.
—–The second offer is in Maryland. You would earn $65,000, with a starter duplex assessed at $135,000. In Maryland, property taxes are 2.4% of the purchase price of the property. The sales taxes are 1% higher than in Pennsylvania, and it also applies to food and clothing. Maryland’s state income tax is 1.5% higher than Pennsylvania’s. You estimate your annual purchases are approximately $18,000, plus an additional $6,000 in food and clothing.
—–With the data above, complete the following table, with all values rounded to the nearest cent. [Note that the Difference column is the difference between Pennsylvania’s and Maryland’s values.]
—–(Hint: Property tax only applies to housing, state sales tax only applies to purchases and food and clothing when applicable, and income tax only applies to the salary):
—-Tax PA MD; Difference: Salary, House Value, Purchases, Food and Clothing, Net Purchases, Property Taxes, Sales Taxes, State Income Taxes, Cost of Living
—–What is the difference in cost of living between the 2 locations based on the differences in sales tax, income tax, and property tax?
You estimate your annual purchases are approximately $18,000, plus an additional $6,000 in food and clothing