Question
9.Just recently having accepted a full time position at your dream job, you go in search of a new car. You found one you like
9.Just recently having accepted a full time position at your dream job, you go in search of a new car. You found one you like a lot and you consider a three-year lease. It will cost you $360 per month, plus an additional $15,000 at the end of the lease if you want to purchase it. If (1) your opportunity cost of money is about an APR of 7.0%, and (2) you intend to purchase the car after the lease, what will be the total investment you will have made in the car when the lease is up and you purchase it?
A. about $26,337
B. about $29,380
C. about $15,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started