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James Canter of Auburn, Alabama, is a good shopper. He always compares shops and uses coupons every week. James figures he saves at least $55
James Canter of Auburn, Alabama, is a good shopper. He always compares shops and uses coupons every week. James figures he saves at least $55 a month as a result. Assuming an interest rate of 4 percent, what is the future value of this amount over ten years? Round your answer to the nearest cent. (Hint: Use Appendix A-3.) Round Future Value of a Series of Equal Amounts in intermediate calculations to four decimal places. A-3 Future Value of a Series of Equal Amounts (an Annuity of $1 Paid at the End of Each Period) (Used to Compute the Compounded Future Value of a Stream of Income Payments) n 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 1 1000 0000 000 1000 1000 .0000 000D ,0000 10000 10000 1000 1000 0000 220100 20200 20300 2 400 20500 2 0 2.00 20800 20000 2.3000 21100 21200 2.sco 2.5400 21500 21600 21 0 21800 2"oo 22000 3 3.030130604 30909 3.1216 31525 3153 3.21 ),2464 1.7751 JD00 471 33144 3.4069 1.4396 34025 3so 6 15 9 15724 3. 16400 $ 5.101052040 53001 5,4163 55256 56a71 57507 s8666 59647 6.9051 622 6.352B 6A803 66 0, 424 6gr7l 10144 71542 72566 74416 82 126825 13412t .1500154258 9171 86 99178885 t8.9771 20.1407 21.3843 227132 )4 1331 255582 27,2207 29,0017 308502 3282 349311 37.1802 395805 8939.810922106 25.1169 274712 saso 33 00 3,3730 41,4463 460105 $1.35599X54397 7a149692 882118 6CB2 1 0.2S16 1234135 131 w4 4 3400 21292392 25 33 65 JI3eR2 35 m3 17 448653 30.4229 30.76 u023 722601 815987 929 10484 T1$$101 134540) 153 ' 134 0210 97.8474 125 56 22 344716 27 2 305368 342480 505 413490057 5S45 628753 21.402 812M3 925026 105 4y10 tJ04360 1976M6 2 4150 1101721 206 3448 2 4384 10800 Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has selected. She has negotiated a purchase price (gross capitalized cost) of $34,000 and could borrow the money to buy from her credit union by putting $2,500 down and paying $739.78 per month for 48 months at 6 percent APR. Alternatively, she could lease the car for 48 months at $505 per month by paying a $2,500 capitalized cost reduction and a $350 disposition fee on the car, which is projected to have a residual value of $11,900 at the end of the lease. Use the Run the Numbers worksheet to advise Amanda about whether she should finance or lease the car. Round your answers to the nearest cent. Finance charges (borrowing the car):$ The dollar cost of leasing: $ Amanda should I-Select-the car
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