you are thinking about leasing a car the purchase price of the car is 26000. theresidual value. the residual value (the amount you could pay to keep the car at theend of the lease) os 13,000 at the end of 36 months. assume the first lease paymentis due one month after you get the car. the interest rate implicit in the lease 6% aprcompounded monthly. what will be your lease payments for a 36 month lease

Leasing occurs when one party, the lessor, agrees to let another party, the lessee, use an asset for…

Answered: what will be your lease payments for 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

See similar textbooks

Similar questions

Please use a TIMELINE (physical)
A lease valued at $22,000 requires payments of $1,629 at the beginning of every three months. If money is worth 5% compounded quarterly, what is the size of the final lease payment? The size of the final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Pls Help
The Kookaburra Golf Resort is redoing its golf course at a cost of $2,744,320. It expects to generate cash flows of $1,223,445, $2,007,812, and $3,147,890 over the next three years. If the appropriate discount rate for the company is 13 percent, what is the NPV of this project? a. $7,581,072 b. $2,092,432 c. $4,836,752 d. $3,112,459
Find the interest paid on a 3-year lease for a $26,765 car if the car depreciates at an annual rate of 10% and the lease has an annual interest rate of 4.8%.
b) A company is thinking of acquiring fixed assets worth TK. 10 million on financial lease for five years at an interest rate of 12%. The lease would be amortized over five years by equal annual installments. You are required to calculate annual installment and show how lease is amortized over five years if installment is paid at year end or at the beginning of the year.
Compute the monthly payments on a 3-year lease for a $29,128 car if the annual rate of depreciation is 19% and the lease's annual interest rate is 3.8%. Round your answer to the nearest dollar. Compute the interest paid on a 2-year lease for a $29,372 car if the annual rate of depreciation is 12% and the lease's annual interest rate is 4.9%. Round your answer to the nearest dollar.
Your lease calls for payments of $500 at the end of each month for the next 12 months. Now your landlord offers you a new 1-year lease which calls for zero rent for 3 months, then rental payments of $700 at the end of each month for the next 9 months. You keep your money in a bank time deposit that pays a simple annual rate of 5 percent. By what amount would your net worth change if you accept the new lease? (Hint: Your return per month is 5%/12 = 0.4166667%.) Group of answer choices +$509.81 −$509.81 +$253.62 −$253.62 +$125.30
What is the maximum bond for a property when the weekly rent is $1200?
Ivanhoe Corporation has $310 million of debt outstanding at an interest rate of 9 percent. What is the dollar value of the tax shield on that debt, just for this year, if Ivanhoe is subject to a 35 percent marginal tax rate?
What is the effective annual rate (EAR) of a mortgage that is advertised at % (APR) over the next twenty years and paid with payments? What is the effective annual rate (EAR) of the mortgage at 10.5% APR with monthly payments?
Annuity due. Reginald is about to lease an apartment for 30 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1,300 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $33,886. What is the implied monthly discount rate for the rent? If Reg is earning 1.5% on his savings monthly, should he pay by month or make the one-time payment? What is the implied monthly discount rate for the rent? % (Round to two decimal places.)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS