Reference no: EM133068556

A floor-plan financier agrees to lend a car dealer funds to buy stock up to a limit of $1 million. The first order under this scheme is for 25 sedans and wagons which average $23 000 each with all ordered optional extras included. The cars are delivered and the invoice paid by the financier on Monday, 1 October. The interest charge is 6.5% p.a., charged monthly on balance at 5.00 pm each day. Five vehicles are sold in the first week, and 6 in the second week, at an average price of $30 000 each. The dealer pays the financier electronically, at cost price, late on Friday at the end of each week for the vehicles sold during that week. The dealer re-orders vehicles at the end of the second week, and 10 new vehicles are delivered and paid for by the financier on the Monday of the fourth week at the same average price as the original lot. Sales comprise 5 vehicles in each of weeks 3 and 4, and 2 in the last few days of the month. How much does the dealer owe the financier on the first day of the new month?