Round dollar amounts to TWO decimal places.John leases a car with a contract that requires start-of-month payments of $331.55 for 3 yearsat 4.83% compounded monthly.a) What is the price of the car if the residual value is $15,853 at the end of the lease?ModeAN =APV =NFV =A/b) How much will John pay in total for leasing the car (without the residual value)?Total paid =

Leasepayments are paid by the monthly payments and by payment of monthly payment the right to use…

Answered: John leases a car with a contract that…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Nevaeh is leasing a car originally valued at $33,630. The lease is being financed with an interest rate of 6.97% compounded monthly with beginning of month payments of $621. (a) How many payments will Nevaeh have to make to repay the original value? payment(s) (b) How long, in months, will it take Nevaeh to pay off the lease? (Hint: In an annuity due, payments are made at the beginning of each period.) month(s)
Round dollar amounts to TWO decimal places. John leases a car priced at $20,373 with a contract that requires start-of-week payments of $64.15 for 4 years at 3.56% compounded weekly. a) What is the residual value of the car at the end of the lease? Mode A N= PV = FV = b) How much will John pay in total for leasing the car (without the residual value)? Total paid =
Your car dealer is willing to lease you a new car for $190 a month for 36 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 5.2 percent, what is the current value of the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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