Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The dealership is running a special promotion where the new graduates can lease the car at a concessional interest rate of 3.75% APR. The financing
The dealership is running a special promotion where the new graduates can lease the car at a concessional interest rate of 3.75% APR. The financing rate for a straight purchase is 5%. The residual value of the car at the end of 60 months is $11000
| Lease | |
| Amount Borrowed | -20000 |
| interest APR | 3.75% |
| Payments | 60 |
| Future value | 11000 |
| Amount Borrowed | -20000 |
| interest APR | 5% |
| Payments | 60 |
If you lease the car, what is your additional cost of ownership for 60 months as compared to buying the car?
Round up your answer to next whole $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
