Round dollar amounts to TWO decimal places.John leases a car priced at $24,822 with a contract that requires start-of-week payments of$65.95 for 2 years at 2.41% compounded weekly.a) What is the residual value of the car at the end of the lease?ModeN=ListenPV =NNb) How much will John pay in total for leasing the car (without the residual value)?Total paid-AFV=

Loans are paid by the periodic payments and these payments are fixed and these carry the payment for…

Answered: Round dollar amounts to TWO decimal…

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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Round dollar amounts to TWO decimal places. John leases a car priced at $20,373 with a contract that requires start-of-week payments of $64.15 for 4 years at 3.56% compounded weekly. a) What is the residual value of the car at the end of the lease? Mode A N= PV = FV = b) How much will John pay in total for leasing the car (without the residual value)? Total paid =
Donald leases a new car by making a down payment of $2.900 and beginning-of- month payments of $280 for four years. If the lease amount of the car is $26,700 and Donald could buy the car for $14,700 at the end of the lease, what is the effective rate of interest of the car lease? Express the effective rate as a percentage to 3 decimal places. NOTE: Make PV positive Full solutions should be shown on separate sheets of paper. Submit your solutions. In addition, include the appropriate entries to solve this question using the TVM Solver as shown below. P/Y CY PV PMT FV Question 2 of 7 NOTE: Make PV positive Full solutions should be shown on separate sheets of paper. Submit your solutions. In addition, include the appropriate entries to solve this question using the TVM Solver as shown below. P/Y CY N I/Y PV PMT EV BGN/END (click to select) Enter "CPT" for the value that needs to be computed. Effective Rate
Round dollar amounts to TWO decimal places. John leases a car with a contract that requires start-of-month payments of $331.55 for 3 years at 4.83% compounded monthly. a) What is the price of the car if the residual value is $15,853 at the end of the lease? Mode A N = A PV = N FV = A/ b) How much will John pay in total for leasing the car (without the residual value)? Total paid =
Adam leases a truck with an upfront payment of $1700 and monthly payments of $290. Assuming there are no additional charges, what will be the total cost of a 3- year lease? State your answer in terms of dollars, rounded to the nearest cent, but do not include a $ sign or the word "dollars" with your response.
Mamadou is leasing a car originally valued at $42,130. The lease is being financed with an interest rate of 7.87% compounded monthly with payments of $466 at the beginning of each month. How many payments will Mamadou have to make to repay the original value of the car? Choose BGNBGN or ENDEND ? BGN END N = (2 decimal places) 1/Y = % PV = $ PMT = $ FV = $ Number of payments = (round to the next higher whole number) Check AnswerQuestion 2 P/Y = C/Y =
Shamma approaches Al-Meezan Islamic Bank to lease a car using an Ijara waIqtina contract ending in the ownership transferring to Shamma. The price of thecar is AED100,000. The lease period is 4 years, during which 40% of the value ofthe asset will be used up. The bank wants a profit rate of 7% in the lease contract.Calculate the monthly lease payment for the customer.Multi Line Text.
Your car dealer is willing to lease you a new car for $190 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 5.2 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.)
Alexis just purchased a new vehicle. Her lease is for 4 years, at an interest rate of 2% compounded monthly. Her payments are $949.63 due at the beginning of every month if she paid a down payment of $7,500 and the residual value at the end of the lease is $17,500. What was the selling prica (MSRP) of the vehicle? Round your final answer to the nearest dollar. P/Y PV FV N PMT
You are interested in leasing a new car for 36 months. • The value of the car is $22,555. • You must pay $3025 at signing, which does not include the first month’s lease payment. • The monthly lease cost for the car is $154 for 36 months. • At the end of the lease, you will need to pay a lease termination fee of $2000. • The interest rate for this type of new car is 1.90% APR. Calculate the present worth of leasing the car.
An office equipment representative has a machine for sale or lease. Ifyou buy the machine, the cost is $7,590. If you lease the machine, youwill have to sign a noncancelable lease and make 5 payments of $2,000each. The first payment will be paid on the first day of the lease. At thetime of the last payment, you will receive title to the machine. Thepresent value of an ordinary annuity of $1 is as attached: The interest rate implicit in this lease is approximately:a. 10%b. 12%c. between 10% and 12%d. 16%
Find the present value of the following annuities. Assume the discounting occurs once a year A. The customer agreed to pay rent at the end of each year and the landlord charges $21,600 per year . The required rate of return of the landlord is 6.85%. The rent contract will last for 7 years Required: Find the present value of this agreement for the landlord B. A customer approached a car sales agent and makes a car lease agreement for 6 years. The cash flow [annual] is $6000. The agent charges 7.2% interest on such contract Required: How much will be the present value of such an agreement ?
McGee Leasing leased a car to a customer. McGee will receive $300 a month,at the end of each month, for 36 months. Use the PV function in Excel® to calculate the asnwers to the following questions1. What is the present value of the lease if the annual interest rate in the lease is 18%?2. What is the present value of the lease if the car can likely be sold for $6,000 at the end ofthree years?

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