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Compute the monthly payments on a 4-year lease for a $28,555 car if the annual rate...

Compute the monthly payments on a 4-year lease for a $28,555 car if the annual rate of depreciation is 18% and the lease's annual interest rate is 6.0%.

Answer is $432 ??

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Answer:

Monthly Payment = Car Amount/Cumulative discount factor
= $ 28555 / 42.58
= $ 670.61 ~ 671
Working:
Cumulative discount factor = (1-(1+i)^-n)/i Where,
= (1-(1+6%/12)^-48)/(6%/12)
= 42.58 n = 4*12 = 48
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