Minimum Submission Requirements: All questions must be answered and the submission must be successfully uploaded to the Dropbox. If work submitted for this competency assessment does not meet the minimum submission requirements, it will be returned without being scored.
Interest and Loan Calculations
This module focused on interest and loan concepts. These concepts are extremely important in starting or running a small business. A business can offer wildly popular products or services, but still be unsuccessful if it isnt based on sound financial decisions. In this assessment, you will investigate the purchase of a car for your business.
For this Assignment you will write an essay to address the requirements described below. Your essay must be carefully planned and written using well-constructed sentences and paragraphs. Make sure that your grammar and spelling are correct. Points will be awarded for content as well as composition. Your essay must be a minimum of 1 page in length with standard 1 inch margins and is required to have at least one reference from a reliable source. This means that you cannot use sites like Wikipedia, Ask.com, and Yahoo answers and that only references from reliable sources will earn points. All resources should be cited both as an in-text citation as well as being listed on a reference page in APA format.
Assignments must be submitted as a Microsoft Word document.
Your Assignment is to write an essay discussing the financing of a new car for your business.
The price of the used car is $23,500. Sales tax on this car is 7% of the price of the vehicle. You intend to finance the entire cost of the car and sales tax, less a down payment of $1,200. You intend to finance the car for 48 months and your car payment will be $551.44 per month.
Your essay should include the following information
Calculate and discuss the amount financed, the installment price of the new car, and the finance charges you will pay over the life of the loan.
Compare and contrast the advantage of paying cash and financing the vehicle over a shorter period of time, as well as, the impact of finding lower interest rates.
Research and discuss the advantages of having good credit versus poor credit when qualifying for a loan. Discuss the implications of your credit score on the interest rates you may qualify for.
Your essay should be complete and cover each point as outlined above. Be sure to include at least one text citation.