Question

Mr. D wants to lease a 2020 Ford Mustang–GT Premiumfor three years. The cars costs $42,000....

Mr. D wants to lease a 2020 Ford Mustang–GT Premiumfor three years. The cars costs $42,000. The residual value of the car is $36,850 after three years. The car dealershipuses an interest rate of 2.4% to determine the payment. Calculate the monthly leasepayment.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

USED : BA II PLUS CALCULATOR

NEED HELP WITH FORMULA, LET ME KNOW

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
THIS MUST BE DONE IN EXCEL: Most people lease for three years. When you purchase a...
THIS MUST BE DONE IN EXCEL: Most people lease for three years. When you purchase a car, you normally finance it with 60 month (5 year) loan. Compare two lease cycles to one purchase for the same car. Assume the second three-year lease costs are the same as the first lease. The car list cost is $25,450. The drive off fees associated with the lease are $1,250. Monthly lease payments are calculated on the three-year depreciation at 2.5% interest. Three-year...
You are deciding whether you want to buy or lease a car that is worth $13,000....
You are deciding whether you want to buy or lease a car that is worth $13,000. Its residual value after 2 years is $8,000, and after 4 years only $4,500. Assume an interest rate of 4.5% compounded monthly. If you take out a 4-year lease, what will be the monthly lease payment?...If you take out a 2-year lease, what will be the monthly lease payment?
The Problem: Holly wants to explore the difference between buying and leasing a vehicle, both over...
The Problem: Holly wants to explore the difference between buying and leasing a vehicle, both over 5 years with monthly payments. The car that she has an interest in has a value of $27 000, and is located in Winkler, MB. If she purchases the vehicle, she can do so with 3% financing. If she leases the vehicle, there is a residual rate of 51%, an acquisition fee of $495 and an interest rate of 5% (no security deposit is...
You need a new car. You can either lease or buy the car for 355 000...
You need a new car. You can either lease or buy the car for 355 000 SEK. In both cases you expect to use the car for 5 years. It will have a residual value of 120 000 SEK after 5 years. You can borrow at a rate of 2.5% APR with monthly compounding. (a) In case you buy the car you will take an annuity loan over 5 year at a borrowing rate of ${col}%. What will be your...
1. Mr A wants to purchase a motor vehicle. The vehicle that he is interested in...
1. Mr A wants to purchase a motor vehicle. The vehicle that he is interested in has a retail price of R350 000. Mr A can only afford a monthly repayment of R6 500. If financed, the vehicle will be financed over a 5 year period at a rate of 11%. Advise Mr A on the residual value amount that he should negotiate on the contract to keep his repayments at R6 500 per month. 2. Mr A entered into...
‘X’ Ltd enters into a 5-year agreement to lease an item of machinery from ‘Y’ Ltd...
‘X’ Ltd enters into a 5-year agreement to lease an item of machinery from ‘Y’ Ltd on 1 July 2019. ‘X’ Ltd incurred costs of $3928 in setting up the lease agreement. The machinery has a fair value of $492 000 at the inception of the lease and it is expected to have an economic life of 6 years, after which time it will have a residual value of $45 000. The lease agreement details are as follows: Length of...
Abdullah wants to buy a car in 6 years. His dream car costs AED 300,000 today...
Abdullah wants to buy a car in 6 years. His dream car costs AED 300,000 today and car prices are expected to increase at a rate of 15% per year for the next 6 years. Calculate the amount that he needs to save on a monthly basis to buy his dream car in 5 years, if he can earn a 12% interest compounded monthly on his savings account.
Automobiles are often leased, and several terms are unique to auto leases. Suppose you are considering...
Automobiles are often leased, and several terms are unique to auto leases. Suppose you are considering leasing a car. The price you and the dealer agree on for the car is $40,000. This is the base capitalized cost. Other costs added to the capitalized cost price include the acquisition (bank) fee, insurance, or extended warranty. Assume these costs are $650. Capitalization cost reductions include any down payment, credit for trade-in, or dealer rebate. Assume you make a down payment of...
On 1st January 2020, a loan was issued and it was amortized over 20 years with...
On 1st January 2020, a loan was issued and it was amortized over 20 years with monthly payments at a nominal interest rate of 8.4% compounded monthly. The first payment was paid on 1st February 2020. The loan is structured in such a way that the first 120 installments will be paid in equal installments of N$6000 and the next 120 installments will be paid in such a way that each succeeding monthly payment will be 3% lower than the...
Toyota Camry, Honda Accord and Ford F-150 are the top 3 best-selling passenger cars in the...
Toyota Camry, Honda Accord and Ford F-150 are the top 3 best-selling passenger cars in the U.S for the last 5 years. Data for 2017 is shown in the table below. Your interest is to determine whether the shares in the passenger car market have changed in 2018. Use an alpha of 0.01 on your test.    2017 Market Share    Observed in 2018 Toyota Camry 0.40    70 Honda Accord 0.20     70 Ford F-150 0.40 60 total 100% 200...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT