exercise: Financing your vehicle: pay cash, take out a loan orto rent out.

You intend to own or lease a vehicle for 42 monthsconsider the following 3 vehicle financing options: a BMW i25Ci 2-D Coupe 20 5.

Option A: Buy the vehicle at the regular price of $32,508 and pay for itfor 42 months, in equal monthly installments, at a nominal interest rate of5.65%, compounded monthly.

Option B: Purchase the vehicle by cash payment, at the reduced price of $31,020.

Option C: Lease the vehicle for 42 months.The table in the Excel file below lists the itemsinterest of each option.

-22 X V A B C D E F G H Element Financement par Paiement Contrat de 10 emprunt comptant location 11 12 Prix $32 508,00 $31 020,00 $32 508,00 13 Acompte $4 500,00 0 0 14 r (%) 5,65% 15 Versement mensuel $736,53 $513,76 16 Duree (mois) 42 42 17 Frais $994,00 18 Montant exigible a la fin du contrat $395,00 19 Option d'achat a la fin du contrat $17 817,00 20 Montant exigible a la signature $4 500,00 $31 020,00 $1 507,76 21