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Michael Packer Case Summary

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Michael Packer was in the market for a brand new car. He had been looking at the 2016 Ford Focus RS as well as the 2016 Audi R8 V10 Plus Coupé. After a lot of contemplating, he came to a decision. He went down to the Ford dealer and got a pre-built car because he is an impatient person. He walked around the white shiny showroom and he found the one he wanted, a Nitrous Blue Focus RS. a) The price of the car was 24% of Michael’s annual income which was $201,616. What was the sale price of the Ford Focus RS? b) Michael had signed a contract to get financed on his Focus RS. After 3 years of paying of his car, Ford would have earnt 2.7% in interest of the total cost of the car. How much money does Ford earn? How much more money does Michael lose from financing, rather than buying outright? Show your answer in decimal and fraction form. c) …show more content…

When you buy a new car, you can choose between getting a $3,500 Visa voucher, or 3 years free servicing saving $350 on a 6-month regular service. What option would be a better choice for him to save more money? d) Michael submitted a review on his Ford Focus RS and posted it to the CarAdvice website. He had given his car a score 69/75. What percentage was the score? What was the score in a

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