You end up leasing $18,291.08 for 4 years. Your down payment was $582. The interest rate...

 

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You end up leasing $18,291.08 for 4 years. Your down payment was $582. The interest rate is 1.84% compounded monthly. The lease payment is monthly and due at the beginning of the month. After 4 vears, there is residual owing on a leased vehicle. You have the option of returning the vehicle after a lease term or buying it out. Assume you choose to purchase the vehicle after the four year lease and have saved for this opportunity. You pay the $13,992 residual plus tax at 1496. Assume you drove 73,364 km in the 4 years. What was the cost per km per year for the leased vehicle? Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 4.12 (Hint: The down payment has already been taken off. So find the PMT value in the Simple Annuity Due formula using your leased amount. You can also use the TVM solver to find PMT. Then find the total value of these monthly payments over the length of the lease; i.e., take your PMT and multiply by the total number of pavments vou make. Add the total value of vour leose pavments, vour down pavment, and the residual value with tax to get the total value of the lease; toke this figure and divide it by the length of your lease in years. This will tell you how expensive it is to drive the car for one year. Then find how many km you drive in a year. Divide these two figures, and you can find the cost to drive per kilometer - it will probably shock you!) You end up leasing $18,291.08 for 4 years. Your down payment was $582. The interest rate is 1.84% compounded monthly. The lease payment is monthly and due at the beginning of the month. After 4 vears, there is residual owing on a leased vehicle. You have the option of returning the vehicle after a lease term or buying it out. Assume you choose to purchase the vehicle after the four year lease and have saved for this opportunity. You pay the $13,992 residual plus tax at 1496. Assume you drove 73,364 km in the 4 years. What was the cost per km per year for the leased vehicle? Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 4.12 (Hint: The down payment has already been taken off. So find the PMT value in the Simple Annuity Due formula using your leased amount. You can also use the TVM solver to find PMT. Then find the total value of these monthly payments over the length of the lease; i.e., take your PMT and multiply by the total number of pavments vou make. Add the total value of vour leose pavments, vour down pavment, and the residual value with tax to get the total value of the lease; toke this figure and divide it by the length of your lease in years. This will tell you how expensive it is to drive the car for one year. Then find how many km you drive in a year. Divide these two figures, and you can find the cost to drive per kilometer - it will probably shock you!)

Answer rating: 100% (QA)

A lease refers to an agreement between lesser and lessee for the use of fixed asset Vehicle for a certain period of time called lease term A buyer rat... View the full answer