Round dollar amounts to TWO decimal places.John leases a car with a contract that requires start-of-month payments of $331.55 for 3 yearsat 4.83% compounded monthly.a) What is the price of the car if the residual value is $15,853 at the end of the lease?ModeAN =APV =NFV =A/b) How much will John pay in total for leasing the car (without the residual value)?Total paid =

Leasepayments are paid by the monthly payments and by payment of monthly payment the right to use…

Answered: John leases a car with a contract that…

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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Similar questions

A tenter with S 1189.08 has a one year lease. The landlord is willing to accept two payment options. )S 1169.08 now, or i)S 100 at the beginning of each month for twelve months What nommal annual interest rate compounded monthly would be required for the two options to have the same present value? Annual nominal interest rate = %?
a7
How is this wrong
A real estate broker decides to lease a car for 36 months. Suppose the annual interest rate is 7.8%, the negotiated price is $48,000, there is no trade-in, and the down payment is $3,000. Find the monthly lease payment (in dollars). Assume that the residual value is 48% of the MSRP of $51,800.
Bha
Jeremy Leasing purchases and then leases small aircraft to interested parties. The company is currently determining the required rental for a small aircraft that cost them $600,000. If the lease is for twenty years and annual lease payments are required to be made at the end of each year, what will be the annual rental if Jeremy wants to earn a return of 10%? a. $64,070. b. $70,476. c. $10,476. d. $30,314.
A 92.
Please help me ......
Auto Leasing Inc. leases an automobile with a fair value of $40,000 to a customer over a four year period with payments due annually. The first payment is due on the first day of the lease. What is the annual lease payment if Auto Leasing Inc. desires a rate of return of 10% ? Note: Do not use a negative sign with your answer. $ 0
Island Water Taxi has decided to lease another boat for four years rather than finance the purchase of the boat at an interest rate of 8.7% compounded monthly. It has set up a long-term lease liability of $55.000. What is the lease payment at the beginning of each month? (Do not round Intermedlate calculations and round your final answer to 2 declmal places.) Lease payment %$4
Marge purchased a new vehicle for $30,000. She made a down payment of $1,000. Her lease is for 3 years, at an interest rate of 3% compounded monthly. The residual value of the vehicle is $10,000. Calculate her beginning of the month payment. I/Y P/Y C/Y N PV PMT FV MODE Answer Answer Answer Answer Answer Answer Answer AnswerBGNEND The monthly payment is $Answer
Round dollar amounts to TWO decimal places. John leases a car priced at $24,822 with a contract that requires start-of-week payments of $65.95 for 2 years at 2.41% compounded weekly. a) What is the residual value of the car at the end of the lease? Mode N= Listen PV = N N b) How much will John pay in total for leasing the car (without the residual value)? Total paid- A FV=

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