MMFree ResponseSpring - Show all steps!! A. You decide to...

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Money Management Free Response Name:________________________________ 1. Justin wants to buy a new car. The car he wants has a base price of $11,700 and options totaling $1800. He has found two different dealerships that have the car. The first dealer is offering $150 over dealer’s cost in which the dealer’s cost is 82% of the base price and 75% of the price of the options. The second dealer is offering $100 over dealer’s cost in which the dealer’s cost is 83% of the base price and 70% of the price of the options. Both dealers have a destination charge of $450. Which dealer is offering Justin the better price? Justify your answer. Content:_______ Reasoning:_______ Communication:_______ TOTAL:_______
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2. Be sure to answer the question completely.
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Unformatted text preview: Show all steps!! A. You decide to invest in a stock that you have heard about. Currently, the stock costs $22.50 per share and you decide to buy 350 shares. If your broker charges a commission of 1% of the total sales price, how much do you pay to buy the stock? B. 2 years later, the stock is worth $35.00 per share, and you decide to sell all of it. This time your broker charges a commission of 1.5% of the total. Find the amount of profit or loss. How do you decide whether it is a profit or loss? C. Suppose the government levies a capital gains tax of 15% on all money earned. Would you be subject to this tax? If so, what is the actual amount of your profit? Content:_______ Reasoning:_______ Communication:_______ TOTAL:_______...
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This note was uploaded on 01/24/2012 for the course HUM 9999 taught by Professor Variousprofessorslisted during the Summer '06 term at Abilene Christian University.

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MMFree ResponseSpring - Show all steps!! A. You decide to...

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