Your car dealer is willing to lease you a new car for $309 a month for 72 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 4.9 percent, what is the current value of the lease

PV$19,242.04

Explanation:

We will calculate the present value of an annuity using our cost of capital

C      309

time72

rate           0.004083333 (A)

PV$19,242.04

This will be the present value of the lease at our capital rate.

Notes

(A)The payment are on a monthly basis, so the interest rate must be monthly to. For that we divide the 4.9 percent which is annual by 12

That way the time and rate are on the same metric.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.