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40. Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period. The price of the
40. Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period. The price of the car is $14,000, and its projected residual value at the end of four years is $3,000.
Monthly payment | $250 |
Capital cost reduction | $1,000 |
Disposition charge | $200 |
Other things being equal, one would want to finance this car rather than take this lease if the finance cost were less than
| a. | $200. |
| b. | $1,550. |
| c. | $2,200. |
| d. | $2,450. |
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