Question

Compute the monthly payments on a 4-year lease for a $29,769 car if the annual rate of depreciation is 15% and the lease's annual interest rate is 4.8%.

Round your answer to the nearest dollar.

__________________________________________

Answer 1

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Answer:

Monthly Payment

=

Car Amount/Cumulative discount factor

=

$ 29,769

/

43.594249

=

$ 682.87

~ 683

Working:

Cumulative discount factor

=

(1-(1+i)^-n)/i

Where,

=

(1-(1+0.004)^-48)/0.004

i

=

4.8%/12

=

0.004

=

43.594249

n

=

4*12

=

48