Jill is leasing a $32,000 car for $599/month for three years. In three years, she expects to buy it outright for $16,000 at the same time she makes her last lease payment. If it costs her 5.5% to borrow, what is the implicit rate in the lease? Should she lease or borrow the money to get the car? (Hint: use the IRR function).
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- Ben Halls is trying to decide whether to lease or purchase a new car costing $18,000. If he leases, he’ll have to pay a $600 security deposit and monthly payments of $450 over the 36-month term of the closed-end lease. Ben could earn 1% on the amount of any down payment or security deposit. On the other hand, if he buys the car then he’ll have to make a $2,400 down payment and will finance the balance with a 36-month loan with a 4% interest rate; he’ll also have to pay a 6 percent sales tax ($1,080) on the purchase price, and he expects the car to have a residual value of $6,500 at the end of 3 years. Ben can earn 4 percent interest on his savingsIf Deborah leases the car, she will pay $549 per month for 3 years with $1,500 due at signing. But, at the end of 3 years, she will have to turn the car in and either lease another car or purchase a car. What would the total amount be that she will pay over the life of the lease?Joshua can purchase a new car for $35,000. Alternatively, in addition to a down payment of $1,400, Joshua can make lease payments of $550 at the beginning of each month for three years to lease the car. The car has a residual value of $17,500. Assume that the cost of borrowing is 4.31% compounded monthly. a. Which option is economically better for Joshua? Buy Now Lease b. In the lease option, what will be the buyback value of the vehicle at the end of two years?
- el buys a new pickup truck on a 72 - month lease at 5 % compounded annually with $ 5,000 down . If her monthly payments are $ 637.92 and the residual value is $ 6,774 , what was the purchase price the truck ? For full marks your answer ( s ) should be rounded to the nearest centHouda is going to lease a car for one year. She has 2 choices: Make a monthly lease payment of $400 on the first day of each month; or pay the entire lease payment of $4000 today. Assume she an earn 1% every month. Which is her best choice. Show your calculations.Marisa leases a car that has a purchase price of $63,500 with an MSRP of $66,950 and decided to lease the car for 36 months. Find the monthly lease payment (in dollars) if the annual interest rate is 4.5%, the trade-in of her car was $35,000, she makes $3,000 down payment, the residual value is 35%, of the MSRP. Include a sales tax of 7.25%. Round your answer to the nearest cent.)
- You must decide whether to buy a new car for $19,000 or lease the same car over a three-year period. Under the terms of the lease, you can make a down payment of 1000$ and have monthly payments of $.150 At the end of the three years, the leased car has a residual value (the amount you pay i 12,000f you choose to buy the car at the end of the lease period) of $. Assume you can sell the new car at the end of the three years at the same residual value. Is it less expensive to buy or to lease? Question content area bottom Part 1 The cost for buying the car and selling it after three years would be $ enter your response here.Sarah is planning to purchase a new house. To purchase the house, she will need to borrow $550,000 from the bank. The loan term is 30 years and the terms of the contract require monthly end of period payments (including interest and principle). The current interest rate offered by her bank is 3.5% per annum for a variable rate mortgage loan. If Sarah borrows the money from her bank and the interest rate decreases by 0.5% three years after the mortgage started, what would the new monthly repayment be?Jeff decides to lease a $35,000 vehicle for 4 years. It is estimated that the car will be sold at a price of $17,955. If the annual interest is 3%, what is the financing fee? $44.89 O $87.50 $66.19 O $151.30
- Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house that sells for $90,000. If she puts 10% down, what will her monthly payment be at (a) 30 years, 5%; (b) 30 years, 512%512% ; (c) 30 years, 6%; and (d) 30 years, 612%612% ? What is the total cost of interest over the cost of the loan for each assumption? (Round your answers to the nearest cent.)Suzan Long is considering buying a home for$350,000.(a) If she makes a down payment of $50,000 andtakes out a mortgage on the rest of the moneyat 5.5% compounded monthly, what will be hermonthly payment to retire the mortgage in 15years?(b) Consider the 60th payment. How much will theinterest and principal payments be?Your car dealer is willing to lease you a new car for $399 a month for 48 months. Payments aredue on the first day of each month starting with the day you sign the lease contract. If your costof money is 3 percent, what is the current value of the lease?