Example #1		Initial Investments		2000		Rate	.0.09
Year	Revenue	Expenses	Net	Present Value
2011	$210.00	$50.00
2012	$220.00	$40.00
2013	$250.00	$40.00
2014	$280.00	$40.00
2015	$300.00	$40.00
2016	$290.00	$80.00
2017	$310.00	$40.00
2018	$335.00	$40.00
2019	$350.00	$40.00
Total	$2545.00	$410.00
			NPV

Consider a recent offer by Metro Mitsubishi

2019 Lancer SE for $69.53 weekly (plus tax) covers all cost for the vehicle

a) Calculate the actual payment (after 15% HST is added), and use it to determine that actual price paid for the car (after fees and taxes); that is, the car loan.

(b) The fine print lists the car with an MSRP of $21,198, freight and delivery fees of $1,350, (unlisted) dealer fees, and taxes (15% HST on everything). How much are the dealer fees?

(c) Construct the amortization table for the actual car loan.

(d) Suppose you get tired of the car and would like to trade it in for a new one at the end of the third year. Surprisingly, the car maintained its value relatively well and you can get $13,500 for it. You decide to pay your bank the $1,500 penalty and pay off the remainder of the loan. What is the out-of-pocket cost for the 3 years of ownership?

Hint: To avoid printing multiple pages for your amortization table, highlight the middle rows by clicking and dragging on the row numbers, right click, and choose Hide