Part 1:

In M4LE1 Hand-in Assignment you were to select a vehicle you would like to drive. In this hand-in assignment you are to choose a similar (or same) vehicle and find the cost to lease it. Describe the vehicle by stating make, model, special features, colour, et cetera. Find the price of the vehicle. You may look for the price at a dealer, in a newspaper, on TV, on the Internet, or source of your choice. Be sure to indicate the price and where you found the information.

Assume that you have $5000 for a down payment to apply to the lease. Calculate the total cost of leasing the vehicle, including the down payment and applicable taxes. You may want to use a leasing calculator. Be sure to show how you arrived at your answer.

Part 2:

Compare the cost of buying the vehicle using your information from M4LE1 to the cost of leasing determined in Part 1. Would you prefer to buy or lease this vehicle? Give 2 reasons to support your choice.

information for M4LE1

I have selected a vehicle that meets the given criteria: a used 2016 Toyota Corolla CE sedan. Here are the details of the vehicle:

Make: Toyota

Model: Corolla CE

Year: 2016

Special Features: Bluetooth HandsFreeLink and audio streaming, multi-angle rearview camera, automatic climate control, Toyota Sensing Suite (including Collision Mitigation Braking System, Road Departure Mitigation System, Adaptive Cruise Control, and Lane Keeping Assist System), LED daytime running lights.

Color: White

To find the price of the vehicle, I will search for used car listings online. Let's assume that I found this particular vehicle listed for $13,000 on a popular used car website.

Now, to calculate the loan payment and total cost, I'll need to find the interest rate and loan term. Let's assume I contacted a local bank called Fast Bank" for the interest rate. They offer a 4-year car loan at an interest rate of 6%.

Using this information, I will calculate the monthly loan payment and the total cost of buying the vehicle.

Loan amount = Price of the vehicle - Down payment

Loan amount = $13,000 - $5,000 = $8,000

Interest rate = 6%per year

Loan term = 4years = 48months

To calculate the monthly loan payment, I can use the formula:

Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Loan Term))

Monthly Interest Rate = Annual Interest Rate / 12

Monthly Interest Rate = 6%12 = 0.005

Monthly Payment = $8,000 0.005 / 1(1+0.005)⁴⁸

Monthly Payment = 40 / 0.212

Monthly Payment = 188.68

So, the monthly loan payment for this vehicle would be approximately $188.68

To calculate the total cost of buying the vehicle, we need to consider the down payment and the total amount paid over the loan term.

Total cost = Down payment + (Monthly Payment * Loan Term)

Total cost = $5,000 + ($188.6848)

Total cost = $5,000 + $9056.64

Total cost = $ 14,056.64

Explanation:

In the scenario provided, the math calculations involve the use of several principles and formulas. Some of the key rules and formulas used include:

1. Loan Amount Calculation: The loan amount is calculated by subtracting the down payment from the price of the vehicle.
2. Monthly Payment Calculation: The monthly loan payment is determined using the formula for calculating a fixed monthly payment for an amortizing loan. This formula takes into account the loan amount, the interest rate, and the loan term.
3. Monthly Interest Rate Calculation: The annual interest rate is divided by 12 to obtain the monthly interest rate.
4. Total Cost Calculation: The total cost is calculated by adding the down payment to the total amount paid over the loan term, which is the product of the monthly payment and the loan term. These calculations involve principles of interest rates, loan amortization, and basic algebraic formulas for financial calculations.

In conclusion the total cost of buying the 2016 Toyota Corolla CE sedan would be approximately $14,056.64 including the down payment and the total cost of the loan.