You are leasing a car The average interest rate in the economy is 3 The lease has the following components a You must pay $ 2 0 0 0 up front at the time of purchase b You pay $ 5 0 0 per month for 5 years c At the end of five years, to keep the car, you would need to pay $ 1 2 , 0 0 0 What is the p...

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You are leasing a car. The average interest rate in the economy is 3 % . The

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Question:

You are leasing a car. The average interest rate in the economy is

3 % .

The lease

has the following components.

.

You must pay $

2000

up front at the time of purchase.

.

You pay $

500

per month for

5

years.

.

At the end of five years, to keep the car, you would need to pay $

12, 000 .

What is the present value of the car, using continuous time discounting.

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation

ISBN: 978-0324302950

6th edition

Authors: Clyde P. Stickney

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Posted Date: Jul 11, 2024 05:36 PM

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You are leasing a car. The average interest rate in the economy is 3 % . The

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Financial Reporting Financial Statement Analysis and Valuation

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