Describe two advantages of leasing a car over buying one.Select all that apply.O A. When the lease ends, you own the car.O B. There are no penalties for ending a lease early.O C. Leasing covers the maintenance.O D. Leases require only a small down payment, or no down payment at all.O E. Lease payments for a new car are lower than loan payments for the same car.

Lease refers renting of an asset. Leasing companies finance the vehicle that a person wants to buy,…

Answered: Describe two advantages of leasing a…

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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I need help learning the steps for this problem please !! Consumer Banker Association released a report showing the lengths of automobile leases for new automobiles. The results are as follows. Lease Length in Months Percent of Leases 13-2425-3637-4849-60More than 60 11.2%37.6%27.4%23.6%0.2% (a) Use the midpoint of each class, and call the midpoint of the last class 66.5 months, for purposes of computing the expected lease term. Also find the standard deviation of the distribution. (Round your answers to two decimal places.) expected lease term in months standard deviation
With high market prices for homes, for many elderly Canadians, the most important source of retirement income will be the equity they have in their homes. A is a secured loan that allows older Canadians to generate income using the equity in their homes without having to sell this asset and in many cases, the mortgage does not have to be paid back until the death of the borrower. A Mortgage-Backed Security B Mortgage Stress Test C Mortgage Term D Reverse Mortgage E Conventional Mortgage
USE FORMULA OR CALCULATOR APPROACH ONLY (NO EXCEL) (a) What is the present value of benefits of owning that car, I.e, saving on rental expenses and selling the car? (b) Should you buy the car?
Using the attached exhibit and the information below, what is the net cost of purchasing this vehicle?To answer the question, use the following assumptions:● The price of the car is $20,000.● The down payment required is $2,000● The security deposit required is $500● The sales tax rate is 10.25%%. Round to the nearest cent. DO NOT INCLUDE COMMAS OR $.● GAP insurance on the lease is $300�� Interest lost or foregone is computed using a 4% after tax rate of return (use in Step 4)● The interest rate on the lease and loan is 9% (use in Step 6).● The lease and loan terms are both 36 months.● Your resale/trade-in value for your vehicle is $6,000● Disposition fee: $250● Lease Payment: $325/ month● Purchase Payment: $360/month
The figure below shows costs for a current home mortgage versus a refinanced home mortgage. Refinancing has initial costs, but results in a lower monthly payment. Which best describes the lines? ***SEE CHART**** The blue line is for refinancing, which starts cheaper but eventually is costlier The blue line is for refinancing, which starts costlier but eventually is cheaper The orange line is for refinancing, which starts cheaper but eventually is costlier The orange line is for refinancing, which starts costlier but eventually is cheaper
Which of the following is NOT typically a benefit of taking a 15 year mortgage instead of a 30 year mortgage? Less total payments. Lower monthly payment Less total money paid back on the loan. Lower interest rate.
i need the answer quickly
James is working with several mortgage brokers to secure a loan to purchase a new house. He plans on living in the house for many years to come and wants a loan that will have minimal risk. What type of loan should James get? A. An adjustable-rate mortgage. His loan payments will adjust over the life of the loan. B. A negative amortizing loan. This will allow James to pay off the loan more quickly. C.A fixed-rate loan. His loan payments will remain constant, which will allow him to properly budget for the payments. D.A term loan. This will allow James to have smaller monthly payments with a balloon payment at the

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