Question
Suppose you obtain a three-year lease for a Volvo S60 and negotiate a selling price of $29,800. The trade-in value of your old car is
Suppose you obtain a three-year lease for a Volvo S60 and negotiate a selling price of $29,800. The trade-in value of your old car is $3850. The annual interest rate is 7.25%, the residual value is 60% of the MSRP of $32,025, and you make a down payment of $2400. Find each of the following:
- (2 pts) What is the net capitalized cost?
- (2 pts) What is the money factor? (Round your answer to 6 decimal places)
- (2 pts) What is the average monthly finance charge?
- (2 pts) What is the average monthly depreciation?
- (2 pts) What is the total monthly payment?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
