Note that you need to use HST of $13\%$ for any tax calculations. Do not use PST & GST as indicated in the workbook. This assignment is based on Ontario which uses HST$.$

Case Study $1-$ Buying vs$.$ Leasing

$28$ marks

Jim has chosen the car he wants and must now decide whether to buy or lease it$.$ The car has an MSRP of $$21,977$ and a residual factor of $34\%.$ Jim negotiates a $$500$ discount and must pay the following additional costs:

$$660$ freight charge

$$100$ tire$/$air tax

$$75$ gas tax

$$85$ administration fee

$$74$ licence plate fee

$$20$ gas fee

Regardless of whether Jim buys or leases the car, the financing is $6\mathrm{.}9\%$ compounded monthly for $48$ months. If Jim buys the car, the finance fee is $$54.$ If he leases the car, the finance fee is $$36.$

ONGOING DEMONSTRATION

$\backslash$table$[[$Deal ReVieW $($NeW Car'$),,],[$MSRP or List Price,,Gas Fee,$],[$Discount$,,$Lien Payout,$],[$Purchase Price,Delivery Price,,$],[$Freight$,$MFG Rebate,,$],[$Tire$/$Air Tax,Down Payment,,$],[$Gas Tax,,Finance Fee,$],[$Administration Fee,Amount Financed,,$],[$Taxable Subtotal,,Interest Rate,$],[$Trade$-$in Allowance,,Loan Term,$],[$Taxable Total,,Monthly Payment,$],[$HST $(13\%),,$Interest Due $($at$,],[$Licence Plate Fee,,,$]]$