1. Payton Inc. reports in its 2017 annual report 10-K, sales of $8,180 million and cost of goods sold of $3,272 million. For next year, you project that sales will grow by 3% and that cost of goods sold percentage will be 1 percentage point higher.
Projected cost of goods sold for 2018 will be:
A. $3,304 million
B. $3,813 million
C. $3,454 million
D. $3,370 million
E. There is not enough information to determine the amount.
2. You have just taken out a $27,000 car loan with a 4% APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest? (Note: Be careful not to round any intermediate steps less than six decimal places.)
When you make your first payment, $_______ will go toward the principal of the loan and $_______ will go toward the interest. (Round to the nearest cent.)