A dealership advertises a sale price of $45 899 (including taxes) for a new truck. The salesman offers Darrel two options • Option 1: Lease o down payment of $5000 o monthly payments of $577.50 (including taxes) for 4 years o residual value of $15 000 after 4 years o allowable limit of 20 000 km/year and $0.15 for each additional kilometre • Option 2: Purchase o down payment of $5000 loan with monthly payments, compounded monthly for 4 years at an annual rate of 4.9% a) Darrel estimates that he will drive 30 000 km/year. If he chooses Option 1, how much will he pay in total if he returns the truck at the end of the lease? b) What will be the total price of the truck, including the down payment, if Darrel decides to purchase it according to Option 2?
A dealership advertises a sale price of $45 899 (including taxes) for a new truck. The salesman offers Darrel two options • Option 1: Lease o down payment of $5000 o monthly payments of $577.50 (including taxes) for 4 years o residual value of $15 000 after 4 years o allowable limit of 20 000 km/year and $0.15 for each additional kilometre • Option 2: Purchase o down payment of $5000 loan with monthly payments, compounded monthly for 4 years at an annual rate of 4.9% a) Darrel estimates that he will drive 30 000 km/year. If he chooses Option 1, how much will he pay in total if he returns the truck at the end of the lease? b) What will be the total price of the truck, including the down payment, if Darrel decides to purchase it according to Option 2?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:A dealership advertises a sale price of $45 899 (including taxes) for a new truck. The salesman offers Darrel two
options
• Option 1: Lease
o down payment of $5000
o monthly payments of $577.50 (including taxes) for 4 years
o residual value of $15 000 after 4 years
o allowable limit of 20 000 km/year and $0.15 for each additional kilometre
Option 2: Purchase
down payment of $5000
o loan with monthly payments, compounded monthly for 4 years at an annual rate of 4.9%
a) Darrel estimates that he will drive 30 000 km/year. If he chooses Option 1, how much will he pay in total if he
returns the truck at the end of the lease?
b) What will be the total price of the truck, including the down payment, if Darrel decides to purchase it
according to Option 2?
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