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3. A Cincinnati car dealer is offering a 5-year lease (starting today) at 6% on a vehicle. The deal also has the following terms: 8% of the total value of the vehicle down upon signing, $275 per month, and a final balloon payment due at the lease end of $5000. How much is the vehicle worth (to the closest dollar)?

3. A Cincinnati car dealer is offering a 5-year lease (starting today) at 6% on a vehicle. The deal also has the following terms: 8% of the total value of the vehicle down upon signing, $275 per month, and a final balloon payment due at the lease end of $5000. How much is the vehicle worth (to the closest dollar)?

Essentials Of Investments
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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3. A Cincinnati car dealer is offering a 5-year lease (starting today) at 6% on a vehicle. The deal also has the following terms: 8% of the total value of the vehicle down upon signing, $275 per month, and a final balloon payment due at the lease end of $5000. How much is the vehicle worth (to the closest dollar)?
Transcribed Image Text:3. A Cincinnati car dealer is offering a 5-year lease (starting today) at 6% on a vehicle. The deal also has the following terms: 8% of the total value of the vehicle down upon signing, $275 per month, and a final balloon payment due at the lease end of $5000. How much is the vehicle worth (to the closest dollar)?
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