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Business, 19.02.2021 01:00 wanderlay29
After deciding to buy a new car, you can either lease the car or purchase it on a 6 year loan. The car you wish to buy costs $45,000. The dealer has a special leasing arrangement where you can pay $500 today and $600 per month for the next 6 years. At the end of the lease period, you return the car to the dealer. If you purchase the car, you will pay it off in monthly payments over the next 6 years at a 6.8% APR with monthly compounding. This is the appropriate discount rate for the lease payments as well. If you purchase the car, you believe that you could sell the car for $30,000 in 6 years. What is the net cost to lease the car? (Express answer as a positive number and round to the nearest dollar)
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After deciding to buy a new car, you can either lease the car or purchase it on a 6 year loan. The c...
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