John Williams plans to lease a car for 4 years. The price is 30,000 EUR, and the bank gives him the option to buy the vehicle at 5,000 EUR at Maturity. The Bank is willing to grant the lease at a rate of 6% 30/360 Unadjusted in a French System, Monthly Payments. The bank charges an opening commission of 600 USD.

A) What is the payment that John must assume if he accepts?

B) What would the amortization table look like?

C) What is the Annual APR of this Leasing?

Answer rating: 100% (QA)

SOLUTION A The payment that John must assume if he accepts the leasing can be calculated using the f... View the full answer