Question
You want to buy your dream car. Its sticker price is $ 65,000. The bank is offering you financing at 2.425% for 60 months. If
You want to buy your dream car. Its sticker price is $ 65,000. The bank is offering you financing at 2.425% for 60 months. If you are required to make a 10% down payment, estimate your monthly payment.. The price is ($ 65,000). You have decided that you cannot afford this payment. Instead, you prefer leasing the car. Ignoring other considerations with leasing, compute the revised monthly payments. Leasing is slightly more expensive at 3.75%, and is offered for 48 months. At the end of the lease period, you can buy the car for its residual blue book value of $ 24,000, or return the car. Assume you will still need to make a 10% down payment on the car.
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