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After taxes and applicable fees, a motor boat has a lease price of $57,011.38. A down payment of $8,000 is required and monthly lease payments
After taxes and applicable fees, a motor boat has a lease price of $57,011.38. A down payment of $8,000 is required and monthly lease payments are $637.75. Referring to the "?"s in the table, and considering inflows and outflows of cash, enter the appropriate values in the blanks below each question. a. If interest charged is 3.36% compounded quarterly, what is the residual value of the boat after the lease expires in 5 years ? PMT PY FV PV CY Mode N IY 12 ? -637.75 ? 4 ? ? 3.36 A Mode = BGN b. To pay off the residual value of the lease found in part (a), a 2-year loan is obtained, charging 4.89% interest compounded semi-annually. What is the size of the month-END payment required to pay off the loan in 2 years? Mode N IY CY PV PMT PY END ? 4.89 2 ? ? 12 N = A ET PV = A AM PMT = A FV = Page 15
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