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General Motors advertised three alternatives for a 17-month lease on a new Tahoe (1) zero dollars down and a lease payment of $2,100 per month
General Motors advertised three alternatives for a 17-month lease on a new Tahoe (1) zero dollars down and a lease payment of $2,100 per month for 17 months, (2) $6,800 down and $1,850 per month for 17 months, or (3) $42,500 down and no payments for 17 months. (Table 1. Table B.2. Table B3, and Table 8.4) (Use appropriate factor(s) from the tables provided.) Calculate the total present value of lease payments under the three alternatives (assume the annual interest rate is 12% compounded monthly). ns 10 1.0% Option Table Value Amount Present Value Down Payment Monthly Payments Total esent Valu 10000 17 22607 03 2.200 $ 37,807 37 007 Option 2 Down Payment Monthly Payments Total Present Value Options Table Value Amount Present Vale 1.0000 S 7,500 5 7.500 17.2200 1.900 32.720 40 229 Amount Present Value Table Value 1 0000 Down Payment Total Presenta
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