Question

A car company offering three purchase to buy new car

plan A : $5000 cash immediately

plan B : $1500 down and 36 monthly payment of $116.25

plan C : $1000 DOWN AND 48 MONTHLY PAYMENTS OF $V 120.50

IF You expect to keep the car for five years and the interest rate of the money is 18% compounded monthly

which payment plan should you choose ?

Answer #1

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price of $50,000. You prefer to turn your cars over after 4 years.
You have two financing choices: lease or borrow & buy. You can
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25938.83
18787.33
25587.3
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You
are planning to acquire a new car with a negotiated purchase price
of $50,000. You prefer to turn your cars over after 4 years. You
have two financing choices: lease or borrow & buy. You can
obtain a four-year loan at 6% annual rate (which means 0.5% monthly
rate) for the entire purchase price of the car. A four-year lease
(equal monthly lease payments start immediately) requires a down
payment of $4,000. The market value of the car is...

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The price of a new car is $12,000. Assume that an individual
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48 months
$
60 months
$
(b) What will...

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