Question
You plan to buy a $35,000 car. A simplified leasing contract includes the following: (i) upfront cost of $5,000, (ii) $450 monthly lease payment over
You plan to buy a $35,000 car. A simplified leasing contract includes the following: (i) upfront cost of $5,000, (ii) $450 monthly lease payment over a 48-month period, and (iii)purchase cost of $18,000 at the end of the lease. Calculate the “implied” APR and EAR ofthe lease? Should you finance your purchase with the lease or a bank loan at 9%?
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Step: 1
Calculate the total cost of the lease Upfront cost 5000 Monthly lease payment 450 for 48 months 2160...
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Introduction To Federal Income Taxation In Canada
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
33rd Edition
1554965020, 978-1554965021
