David plans to lease a new car for 36 months. To sign the lease, he needs to make an upfront payment of $3,200 which does not include the first month of the lease payment. The monthly lease cost of the car is $302 for 36 months. At the end of the lease, he will pay a termination fee of $1500. If the interest rate of this type of lease is 3% per year compounded monthly, what is the future worth of this lease?(DO NOT USE EXCEL)

David plans to lease a new car for 36 months. To sign the lease, he needs to make an upfront payment of $3,200 which does not include the first month of the lease payment. The monthly lease cost of the car is $302 for 36 months. At the end of the lease, he will pay a termination fee of $1500. If the interest rate of this type of lease is 3% per year compounded monthly, what is the future worth of this lease?(DO NOT USE EXCEL)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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