It sputtered and squeaked and with a small hesitation followed by an abbreviated lunge, it was finally over: Ol Reliable, the car Jamie Lee had driven since she first earned her drivers license at the age of 17, completed its last mile. Thirteen years and 140,000 miles later, it was time for a new vehicle.

amie Lee had to start over from scratch. She decided that she must fully research the vehicle purchase process before browsing at another dealership. She felt she was getting caught up in the moment and vowed to do her research before speaking with another salesperson.

Complete the table below to compare the costs and benefits of a cash purchase versus a credit purchase. Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories. See below for the necessary data.

Research for Nissan Versa Sedan 2016

*4 speed automatic

*Air conditioning

*Bluetooth hands-free phone system

	Credit Purchase			Lease
Total price of car	$16,700.00		Total price of car	$16,700.00
Down payment (-)	$740.00		Acquisition fee (+)	$670.00
Amount financed	$18,120.00		Adjusted capitalized cost	$16,920.00
Length of time	60 MONTHS		Length of time	36 MONTHS
Interest rate	3.69%		Security deposit	$350.00
Monthly payment	$302.00		Monthly payment	$299.00
Savings account interest earned rate = 1.06%
Estimated value of car at end of loan - $5,500

www.nissanusa.com

• Jamie Lee intends to use the car for at least five years before selling or trading it for a small SUV.
• Note that there is a $500 rebate offer for cash purchase.
• The tax is calculated using the Total cost of vehicle.

Total cost of vehicle	$16,700.00
Tax	[3%]
Tags and registration (delivery/set up fees)	$69.00

I ONLY NEED THE ANSWER TO OPPORTUNITY COST

2017 Nissan Versa CASH PRICE Selling price Sales tax Additional charges (delivery, setup, service contract) Discounts (employee, senior citizen, or student discounts; discounts for paying cash) Opportunity cost (= Net cost of item x percent interest that could be earned x years of use) Total financial and economic cost when paying cash $ 16,700.00 $ 501.00 $ 69.00 $ 500.00 $ 911.65 $ 17,681.65 CREDIT PRICE Down payment Financing (= Monthly payment x number of months) Additional financing charges (application fee, credit report, credit life insurance) Product-related charges (delivery, setup) Discounts that may apply Total financial and economic cost when using credit $ 740.00 $ 18,120.00 $ 0.00 $ 69.00 $ 0.00 $ 18,929.00 2017 Nissan Versa CASH PRICE Selling price Sales tax Additional charges (delivery, setup, service contract) Discounts (employee, senior citizen, or student discounts; discounts for paying cash) Opportunity cost (= Net cost of item x percent interest that could be earned x years of use) Total financial and economic cost when paying cash $ 16,700.00 $ 501.00 $ 69.00 $ 500.00 $ 911.65 $ 17,681.65 CREDIT PRICE Down payment Financing (= Monthly payment x number of months) Additional financing charges (application fee, credit report, credit life insurance) Product-related charges (delivery, setup) Discounts that may apply Total financial and economic cost when using credit $ 740.00 $ 18,120.00 $ 0.00 $ 69.00 $ 0.00 $ 18,929.00