Buying vs. Leasing a Car Task - Mr. Andrew Smith
1) Calculate the cost of each new car lease:a) A car worth $18,000 leasing for $1,000 down plus 36 payments of $299b) A minivan worth $27,500 leasing for 48 payments of $399c) A luxury sedan worth $72,000 leasing for a $7,500 down payment and 39 monthly payments of $899.2) Consider the minivan in question 1b). Let’s look at what you would pay for the van if you bought it outright. You will finance the $27,500 (PV) for 48 monthly payments at 4.9% compounded monthly.2955341180391(payments)000(payments)0a) Calculate your monthly payment (Pmt).b) Calculate the total of 48 monthly payments.3) Three cases of financing a used car are shown. Assume that interest is compounded monthly. Use the TVM solver to find the monthly payment in each case.a) $4000 is borrowed for 3 years at 3.9% interest.7566758801(payments)000(payments)0Monthly Payment =b) $8500 is borrowed for 4 years at 4.5% interest.-5080185420(payments)000(payments)0Monthly Payment =c) $15,000 is borrowed for 5 years at 4.1% interest.-5080186055(payments)000(payments)0Monthly Payment = ................
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