Find the monthly payments on a 2-year lease for a $28,945 car if the car's residual value is $18,583 and the lease has an annual interest rate of 3.5%.

Round your answer to the nearest dollar.

1 Hint:

To solve this problem, remember that the monthly payments in a leasing computed by the interest on residual plus the payment on the loss of value. To find the interest on residual, recall that you will be using I = PRT. P is the residual value, and T = 1 month because it is a monthly payment, so dont forget to adjust R. Then, to find the monthly payment on loss value, recall that PV = (PMT)(an|i), where an|i = [1-(1+i)n]/i. PV is the loss value which is the cost of the new asset the residual value.

Find the monthly payments on a 3-year lease for a $28,910 car if the car depreciates at an annual rate of 10% and the lease has an annual interest rate of 6%.

Round your answer to the nearest dollar.

2 Hint:

To solve this problem, remember that the monthly payments in a leasing computed by the interest on residual plus the the payment on the loss of value . To find the interest on residual, recall that you will be using I = PRT. P is the residual value which can be found using the compound interest formula (FV is the residual, PV is the value when new, i is the annual rate of depreciation, and n is the lease term in years). T is equal to one month because we are computing a monthly payment, so dont forget to adjust R. , To find the monthly payment on the loss value, you will use annuities (PV = (PMT)(an|i), where an|i = [1-(1+i)n]/i). PV is the loss value which is the cost of the new asset the residual value..