Your car dealer is willing to lease you a new car for $180 a month for 36 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 3.2 percent, what is the current value of the lease?

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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Your car dealer is willing to lease you a new car for
$180 a month for 36 months. Payments are due on the
first day of each month starting with the day you sign
the lease contract. If your cost of money is 3.2 percent,
what is the current value of the lease?
(Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
Note: It is highly recommended to use Excel (or Google
Sheets) or a financial calculator to solve this problem.
Transcribed Image Text:Your car dealer is willing to lease you a new car for $180 a month for 36 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 3.2 percent, what is the current value of the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Note: It is highly recommended to use Excel (or Google Sheets) or a financial calculator to solve this problem.
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