Question
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 $
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Trade Union Finance
Authors: Marick F. Masters, Raymond Gibney
1st Edition
1032371382, 978-1032371382
