Asked Dec 17, 2019
Paula bought a new flotation tank for $8,000. She must pay 5% sales tax and 7% excise tax. The company is shipping the tank, so Paula must also pay a $15 insurance charge. What's the total purchase price of the tank?
A. $8,560
B. $8,400
C. $8,975
D. $8,960

Expert Answer

Step 1


Hence, the total purchase price of the flotation tank is $8,975.

Answer: Option C


Image Transcriptionclose

J7 A Particulars 2 Price of flotation tank 8000 3 Sales tax 4 Excise tax 400 560 5 Insurance 15 S8,975 Total purchase price 6


Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?


See Solution
*Response times may vary by subject and question.
Tagged in



Related Finance Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: 6) Year Project A Project B Difference     0 -75000 -75000 0     1 26300 24000 2300     2 2950...

A: Calculate the NPV of both the projects at different rates.


Q: Question 1 • An analyst has gathered P/E information on two stocks, Firm A and Form B. Market Data o...

A: Firm A:Firm A has a trailing PE of 10, lower than the trailing PE of peers. Also, its Leading PE of ...


Q: A European call and put option on the same security both expire in threemonths, both have a strike p...

A: Arbitrage is the process of taking advantage of a mis pricing of a security by buying and selling it...


Q: Dudley Hill Golf Club’s market-to-book ratio is currently 2.5 times and the PE ratio is 6.75 times. ...

A: Market value ratios show the relation between share value, book value and earnings. Some common mark...


Q: XYZ company has just paid a dividend of $1.15. The required rate of return on the stock is 13.4%, an...

A: Calculation of Current Value of Stock:The current value of stock is $23.Excel Spreadsheet:


Q: Please show how to do this in Excel.  Thank you.

A: “Hi, as per our policy we will answer the first question. Kindly repost the remaining questions sepa...


Q: Bunco Game Financial Planners, Inc. promises to triple your money in 8 years. Whatrate of return (yi...

A: Let the amount invested be $100, amount at the end of 8 years is expected to be $300 ($100*3). Rate ...


Q: only answer b)   Question 2. (a) Use the Black-Scholes formula to find the current price of a Europe...

A: (b) Strike Price (X) = 60Spot Price (S) = 50Risk-free Rate (r) = 10% or 0.1Standard Deviation (σ) = ...


Q: please show all work and state answer clearly

A: To solve the question, we need to use the concept of time value of money. According to time value of...