National Motors Company advertised three alternatives for a 17-month lease on a new Tahoe: (1) zero dollars down and a lease payment of $2,100 per month for 17 months, (2) $6,800 down and $1,850 per month for 17 months, or (3) $42,500 down and no payments for 17 months. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. Calculate the total present value of lease payments under the three alternatives (assume the annual interest rate is 12% compounded monthly). Option 1 Down Payment Monthly Payments Total Present Value Option 2 n = Table Value 1.0000 Table Value Amount Amount Present Value $ Present Value 0 0
National Motors Company advertised three alternatives for a 17-month lease on a new Tahoe: (1) zero dollars down and a lease payment of $2,100 per month for 17 months, (2) $6,800 down and $1,850 per month for 17 months, or (3) $42,500 down and no payments for 17 months. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. Calculate the total present value of lease payments under the three alternatives (assume the annual interest rate is 12% compounded monthly). Option 1 Down Payment Monthly Payments Total Present Value Option 2 n = Table Value 1.0000 Table Value Amount Amount Present Value $ Present Value 0 0
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
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