You want to lease a set of golf clubs from Pings Ltd. The lease contract is in the form of12 equal monthly payments at an APR of 8.9 percent compounded monthly. Because theclubs cost $1,900 retail, the company wants the value today of the lease payments toequal $1,900. Suppose that your first payment is due immediately. What will yourmonthly lease payments be? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)Lease payment

To solve this problem, we need to calculate the monthly lease payments using the given information.…

Answered: You want to lease a set of golf clubs…

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

See similar textbooks

Similar questions

You want to lease a set of golf clubs from Pings Ltd. The lease contract is in the form of 24 equal monthly payments at an APR of 8.4 percent compounded monthly. Because the clubs cost $2,500 retail, the company wants the value today of the lease payments to equal $2,500. Suppose that your first payment is due immediately. What will your monthly lease payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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.)
Help
McGee Leasing leased a car to a customer. McGee will receive $300 a month,at the end of each month, for 36 months. Use the PV function in Excel® to calculate the asnwers to the following questions1. What is the present value of the lease if the annual interest rate in the lease is 18%?2. What is the present value of the lease if the car can likely be sold for $6,000 at the end ofthree years?
You are considering a loan vs a lease for a new piece of equipment. The price of the equipment is $34,500. You can obtain a five year loan for 4% APR compounded monthly. The other choice is a five year lease. What is the maximum interest rate (APR compounded monthly) the lease can be for payments to be equal to the loan payment? Assume you are making monthly payments.
An office equipment representative has a machine for sale or lease. Ifyou buy the machine, the cost is $7,590. If you lease the machine, youwill have to sign a noncancelable lease and make 5 payments of $2,000each. The first payment will be paid on the first day of the lease. At thetime of the last payment, you will receive title to the machine. Thepresent value of an ordinary annuity of $1 is as attached: The interest rate implicit in this lease is approximately:a. 10%b. 12%c. between 10% and 12%d. 16%
You need a car and decide to lease for 36 months. The original price is $20,000 and the trade value in 36 months, assuming you don't exceed the mileage allowance, is $5,000 (treat this as a future value). No down payment is required. If the interest rate is 9% APR compounded monthly, what is the lease payment? I need it witha solutuion $503.38 $5066.37 $5100.15 $510.67
1. Suggest you are going to lease a car with an MSRP of $30 000. The manufacturer has set a residual of 60% for a 3-year lease. The dealer has agreed to a selling price of $28 000, and there's a rebate of $500 from the manufacturer. Also you will have a $1 700 advance payment and the lease carries an interest rate of 9% per year. How much would your monthly pretax lease paymentsbe? Manufacturer's Suggested Retail Price MSRP USD 30,000.00 Negotiated sales price NSP USD 28,000.00 Lease Term LT month 36.00 Residual persentage RP dec. 0.60 Advance payment AP USD 1,700.00 Rebate R USD 500.00 Interest Rate APR % 9.00 Calculate the following 1. Calculation of Depreciation fee: Net capitalized cost NCC USD 25,800.00 Residual Value RV USD 18,000.00 Depreciation over lease term Dt USD 7,800.00 Depreciation charge (monthly) D USD 216.67 2. Calculation of Finance fee (Rent charge): Money factor MF - 0.003750 Finance fee (monthly) F USD 164.25…
Could you please help me with the following questions? Using a TVM solver could you answer this question. Suppose a new car with a purchase price of $25,150 can be bought or leased at an interest rate of 5.6%, compounded monthly for 48 months. The down payment on the purchase is 10% of the purchase price or $2,515, while the down payment on the lease is $1,040. The residual value for the lease is $14,750. There is a similar car on the lot that is two years old, selling for $17,500. The down payment required on the used car is $1,750. Determine the monthly payment for each of the three options if the terms of each loan are the same. Determine the total amount of interest paid on each loan. Determine the total amount paid for each of the three options, including principal, interest, and down payment.
A real estate broker decides to lease a car for 36 months. Suppose the annual interest rate is 7.8%, the negotiated price is $49,000, there is no trade-in, and the down payment is $4,000. Find the monthly lease payment (in dollars). Assume that the residual value is 49% of the MSRP of $51,5000. Round your answer to the nearest cent.
Please use a TIMELINE (physical)
4. You plan to lease (Begin Mode!!!) a new care today. The dealership's finance office quotes you a deal with no money down and a $450 monthly payment (assume no taxes) for the next 36 months. Atthe end of the 36 months you plan to buy the car for $18,000. Thelisted price today for the car is $30,000 What CAP RATE (the interest rate on the lease) are they charging for this lease deal? Some notes: Think about which way your cash flows go. You willl make a $450 payment each month. You will also pay $18,000 at the end of the lease if you buy the car The I/Y you calculate for the MONTHLY payments is not the final answer! 1. 2. N I/Y PV PMT FV CAP RATE on the lease: (This is the answer to the question)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS