THIS IS VEHICLE HINANCE

** just answer the letter E & F.

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 $4000. 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) 27 OD b) Calculate the deferred payment if Jake purchases the truck through financing (4 marks) erica Downpayment 77 000 P/v present the 4000 Rate / Interest rate 30 00 APER/ compounding perions 0.61% 36 pint / perionic payment 10*7.41 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) 1.4800 45 37000 d) Calculate the cost of leasing the truck for three years. (1 mark) PMT/Periodic prynent PV / Present value 36 NPER/ compounding penias 0.96% rate / Interest rate per comprending mat pered Annual Interest rate 1.48% continu Assignment 5.1: Financing a New Vehicle (continued) e) If Jake only needed this truck for three years, which financing option would be less expensive-buying the truck outright and then selling it or leasing? How much cheaper? (2 marks) f) If Jake only needed this truck for three years, which financing option would be less expensive-buying the truck with financing and then selling it, or leasing? How much cheaper? (2 marks)