Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
1. Suggest you are going to lease a car with an MSRP of $30 000. The manufacturer has set a residual of 60% for a 3-year lease. The dealer has agreed to a selling price of $28 000, and there's a rebate of $500 from the manufacturer. Also you will have a $1 700 advance payment and the lease carries an interest rate of 9% per year. How much would your monthly pretax lease paymentsbe?
| Manufacturer's Suggested Retail Price | MSRP | USD | 30,000.00 |
| Negotiated sales price | NSP | USD | 28,000.00 |
| Lease Term | LT | month | 36.00 |
| Residual persentage | RP | dec. | 0.60 |
| Advance payment | AP | USD | 1,700.00 |
| Rebate | R | USD | 500.00 |
| Interest Rate | APR | % | 9.00 |
Calculate the following
| 1. Calculation of |
|||
| Net capitalized cost | NCC | USD | 25,800.00 |
| Residual Value | RV | USD | 18,000.00 |
| Depreciation over lease term | Dt | USD | 7,800.00 |
| Depreciation charge (monthly) | D | USD | 216.67 |
| 2. Calculation of Finance fee (Rent charge): | |||
| Money factor | MF | - | 0.003750 |
| Finance fee (monthly) | F | USD | 164.25 |
| 3. Calculation of Lease payment (pretax): | |||
| Monthly Lease Payment (Pretax) | LP | USD | 380.92 |
Step by step
Solved in 2 steps
