Your car dealer is willing to lease you a new car for $399 a month for 48 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 percent, what is the current value of the lease?

Your car dealer is willing to lease you a new car for $399 a month for 48 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 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

Problem 1PS

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Question

Your car dealer is willing to lease you a new car for $399 a month for 48
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 percent,
what is the current value of the lease?

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