Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please provide a hand written solution You end up leasing $16719.52 for 4 years. Your down payment was $1109. The interest rate is 1.38% compounded

please provide a hand written solution
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
You end up leasing $16719.52 for 4 years. Your down payment was $1109. The interest rate is 1.38% compounded monthly. The lease payment is monthly and due at the beginning of the month. After 4 years, there is residual owing on a leased vehicle. You have the option of returning the vehicle after a lease term or buying it out. Assume you choose to purchase the vehicle after the lease and have saved for this opportunity. You pay the $13650 residual plus tax at 13%. Assume you drove 46224km in the 4 years. What was the cost per km per year for the leased vehicle? Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 4.12 (Hint: The down payment has already been taken off. So find the PMT value in the Simple Annuity Due formula using your leased amount. You can also use the TVM solver to find PMT. Then find the total value of these monthly payments over the length of the lease; i.e., take your PMT and multiply by the total number of payments you make. Add the total value of your lease payments, your down payment, and the residual value with tax to get the total value of the lease; take this figure and divide it by the length of your lease in years. This will tell you how expensive it is to drive the car for one year. Then find how many km you drive in a year. Divide these two figures, and you can find the cost to drive per kilometer - it will probably shock you!) You end up leasing $16719.52 for 4 years. Your down payment was $1109. The interest rate is 1.38% compounded monthly. The lease payment is monthly and due at the beginning of the month. After 4 years, there is residual owing on a leased vehicle. You have the option of returning the vehicle after a lease term or buying it out. Assume you choose to purchase the vehicle after the lease and have saved for this opportunity. You pay the $13650 residual plus tax at 13%. Assume you drove 46224km in the 4 years. What was the cost per km per year for the leased vehicle? Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 4.12 (Hint: The down payment has already been taken off. So find the PMT value in the Simple Annuity Due formula using your leased amount. You can also use the TVM solver to find PMT. Then find the total value of these monthly payments over the length of the lease; i.e., take your PMT and multiply by the total number of payments you make. Add the total value of your lease payments, your down payment, and the residual value with tax to get the total value of the lease; take this figure and divide it by the length of your lease in years. This will tell you how expensive it is to drive the car for one year. Then find how many km you drive in a year. Divide these two figures, and you can find the cost to drive per kilometer - it will probably shock you!) You end up leasing $16719.52 for 4 years. Your down payment was $1109. The interest rate is 1.38% compounded monthly. The lease payment is monthly and due at the beginning of the month. After 4 years, there is residual owing on a leased vehicle. You have the option of returning the vehicle after a lease term or buying it out. Assume you choose to purchase the vehicle after the lease and have saved for this opportunity. You pay the $13650 residual plus tax at 13%. Assume you drove 46224km in the 4 years. What was the cost per km per year for the leased vehicle? Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 4.12 (Hint: The down payment has already been taken off. So find the PMT value in the Simple Annuity Due formula using your leased amount. You can also use the TVM solver to find PMT. Then find the total value of these monthly payments over the length of the lease; i.e., take your PMT and multiply by the total number of payments you make. Add the total value of your lease payments, your down payment, and the residual value with tax to get the total value of the lease; take this figure and divide it by the length of your lease in years. This will tell you how expensive it is to drive the car for one year. Then find how many km you drive in a year. Divide these two figures, and you can find the cost to drive per kilometer - it will probably shock you!) You end up leasing $16719.52 for 4 years. Your down payment was $1109. The interest rate is 1.38% compounded monthly. The lease payment is monthly and due at the beginning of the month. After 4 years, there is residual owing on a leased vehicle. You have the option of returning the vehicle after a lease term or buying it out. Assume you choose to purchase the vehicle after the lease and have saved for this opportunity. You pay the $13650 residual plus tax at 13%. Assume you drove 46224km in the 4 years. What was the cost per km per year for the leased vehicle? Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 4.12 (Hint: The down payment has already been taken off. So find the PMT value in the Simple Annuity Due formula using your leased amount. You can also use the TVM solver to find PMT. Then find the total value of these monthly payments over the length of the lease; i.e., take your PMT and multiply by the total number of payments you make. Add the total value of your lease payments, your down payment, and the residual value with tax to get the total value of the lease; take this figure and divide it by the length of your lease in years. This will tell you how expensive it is to drive the car for one year. Then find how many km you drive in a year. Divide these two figures, and you can find the cost to drive per kilometer - it will probably shock you!) You end up leasing $16719.52 for 4 years. Your down payment was $1109. The interest rate is 1.38% compounded monthly. The lease payment is monthly and due at the beginning of the month. After 4 years, there is residual owing on a leased vehicle. You have the option of returning the vehicle after a lease term or buying it out. Assume you choose to purchase the vehicle after the lease and have saved for this opportunity. You pay the $13650 residual plus tax at 13%. Assume you drove 46224km in the 4 years. What was the cost per km per year for the leased vehicle? Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 4.12 (Hint: The down payment has already been taken off. So find the PMT value in the Simple Annuity Due formula using your leased amount. You can also use the TVM solver to find PMT. Then find the total value of these monthly payments over the length of the lease; i.e., take your PMT and multiply by the total number of payments you make. Add the total value of your lease payments, your down payment, and the residual value with tax to get the total value of the lease; take this figure and divide it by the length of your lease in years. This will tell you how expensive it is to drive the car for one year. Then find how many km you drive in a year. Divide these two figures, and you can find the cost to drive per kilometer - it will probably shock you!) You end up leasing $16719.52 for 4 years. Your down payment was $1109. The interest rate is 1.38% compounded monthly. The lease payment is monthly and due at the beginning of the month. After 4 years, there is residual owing on a leased vehicle. You have the option of returning the vehicle after a lease term or buying it out. Assume you choose to purchase the vehicle after the lease and have saved for this opportunity. You pay the $13650 residual plus tax at 13%. Assume you drove 46224km in the 4 years. What was the cost per km per year for the leased vehicle? Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 4.12 (Hint: The down payment has already been taken off. So find the PMT value in the Simple Annuity Due formula using your leased amount. You can also use the TVM solver to find PMT. Then find the total value of these monthly payments over the length of the lease; i.e., take your PMT and multiply by the total number of payments you make. Add the total value of your lease payments, your down payment, and the residual value with tax to get the total value of the lease; take this figure and divide it by the length of your lease in years. This will tell you how expensive it is to drive the car for one year. Then find how many km you drive in a year. Divide these two figures, and you can find the cost to drive per kilometer - it will probably shock you!)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

More Books

Students also viewed these Accounting questions

Question

\f

Answered: 1 week ago

Question

s46.s4 14man s46.s4 14man

Answered: 1 week ago