Sulaiman just graduated from his study last year. Currently, he started workingwith one company in Alor Setar, Kedah and his job requires him to travelfrequently. Sulaiman has two choices whether to purchase or to lease a car. Thefollowing information is available for him to make the decision.Purchase costDown paymentLoan paymentmonthlyEstimated valueLeasing costSecurity depositLease paymentper monthRM4,900RM520 for 108RM860RM598 for 96monthsmonthsof vehicle at endEnd-of-leaseof loanRM24,000RM1,850chargesterm/ownershipperiodOpportunity cost interest rate: 5%i)Based on the information above, determine which alternative should beconsidered by Sulaiman. Prove your answer with calculation.

Purchase Cost Leasing Cost Down Payment RM 4,900.00 Security Deposit RM 860…

Answered: Sulaiman just graduated from his study…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 10FPE

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Callum would like to purchase a new ATV that costs $6500. He decides to pay $2400 of the balance using his credit card and the remaining $4100 using his line of credit. Use the screen shots below to determine the total amount of interest Callum will end up paying. Credit Card Line of Credit N=36 I%=19 PU=2400 •PMT= 87.974448. EV=0 PY=12 CY=12 PMT:ENL BEGIN N=36 PU=4100 PMT=-122.88067. PY=12 Cy=12 PMT:ENL BEGIN $323.68 $1090.60 $7590.60 $766.92
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