Drive with Us is an automobile retailer and pays floor plan financing to finance the cars they hold in inventory. If the interest rate on their floor plan financing is 5 percent, how much do they pay in interest per day on a car with a wholesale price of $40,000?
A) $5.48
B) $6.75
C) $4.52
D) $5.98
A) $5.48
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Suppose in year 1 the CPI is 90, in year 2 the CPI is 100, and in year 3 the CPI is 110. Then, inflation is
A) 11 percent between years 2 and 3. B) 11 percent between years 1 and 2. C) 100 percent in year 1. D) 10 percent between years 2 and 3. E) Both answers B and D are correct.
Free riding:
A. cannot occur if strategizing takes place. B. is reflected by a downward-sloping best response function. C. is reflected by an upward-sloping best response function. D. is no player's best response.
If nations begin to specialize in production for the purpose of trade,
a. the utility from consumption will increase, but not the total output. b. total world output will increase, as well as well being from consumption. c. total world output will increase, but well being from consumption will not. d. neither total output nor well being from consumption will change. e. the impact on total output and well being cannot be predicted.
The group of goods and services used to compute the GDP deflator changes automatically over time, but the group of goods and services used to compute the CPI does not
a. True b. False Indicate whether the statement is true or false