QUESTION ONE

Earna Wheeler is able to make a down payment of $$4000$ on a two$-$door sedan she

purchases for $$23,457,$ including tax. In order to finance the remaining portion, she

takes out a three$-$year car loan at a fixed interest rate of $8\mathrm{.}5\%.($Module $5,$ Lesson $1)$

a$)$ Calculate her monthly payment for the two$-$door sedan. $(3$ marks$)$

b$)$ Calculate her deferred payment for the two$-$door sedan. $(1$ marks$)$

c$)$ Calculate her finance charge for the automobile. $(1$ mark$)$

A four$-$wheel$-$drive vehicle sells for $$28,750,$ plus tax, and leases for $$378$ per

month plus tax for a lease term of $24$ months. A down payment of $$5000$ is required.

The guaranteed residual value of the vehicle is $60\%$ of the sales price. $($Module $5,$

Lesson $2$ and Lesson $4)$

a$)$ Calculate the total monthly leasing payment. $(2$ mark$)$

b$)$ Calculate the total amount paid by the end of the lease. $(5$ marks$)$

c$)$ Calculate the total residual value of the four$-$wheel$-$drive vehicle, including taxes.

$(3$ marks$)$

d$)$ Calculate the total cost of the vehicle if it is purchased outright at the end of the

lease. $(5$ marks$)$

e$)$ Calculate how much the vehicle depreciates in two years. $(5$ marks$)$