THIS IS A VEHICLE FINANCE. 1.7

Assignment 5.1: Financing a New Vehicle (continued) 7 Jake wants to purchase a 4 x 4 truck priced at $37,000. A financial institution has offered Jake financing for three years at 8.25%, with a down payment of S4000. This truck can also be leased, with no down payment, for $856 a month including taxes for three years. a) Calculate the cost of purchasing the truck outright. (1 mark) b) Calculate the deferred payment if Jake purchases the truck through financing. (4 marks) c) At the end of three years, the truck can be sold for 40% of its selling price. How much could Jake get from the sale of his truck at the end of three years? (1 mark) d) Calculate the cost of leasing the truck for three years. (1 mark) continued