Suppose you obtain a five-year lease for a Porsche and negotiate a selling price of $143,000. The annual interest rate is 8.4%, the residual value is $76,000, and you make a down payment of $7000. Find each of the following. (a) The net capitalized cost $ (b) The money factor (rounded to four decimal places) (c) The average monthly finance charge (rounded to the nearest
Suppose you obtain a five-year lease for a Porsche and negotiate a selling price of $143,000. The annual interest rate is 8.4%, the residual value is $76,000, and you make a down payment of $7000. Find each of the following. (a) The net capitalized cost $ (b) The money factor (rounded to four decimal places) (c) The average monthly finance charge (rounded to the nearest
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose you obtain a five-year lease for a Porsche and negotiate a selling price of $143,000. The annual interest rate is 8.4%, the residual value is $76,000, and you make a down payment of $7000. Find each of the following.
(a) The net capitalized cost
$
(b) The money factor (rounded to four decimal places)
(c) The average monthly finance charge (rounded to the nearest cent)
$
(d) The average monthlydepreciation (rounded to the nearest cent)
$
(e) The monthly lease payment (rounded to the nearest cent)
$
$
(b) The money factor (rounded to four decimal places)
(c) The average monthly finance charge (rounded to the nearest cent)
$
(d) The average monthly
$
(e) The monthly lease payment (rounded to the nearest cent)
$
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