You need to decide whether to lease or purchase a new car for 4 years A B 1 Price of car 43,000 2 Resale value after 4 years 21,500 3 Initial lease payment 4,300 4 Monthly lease payment 430 5 Number of lease payments 48 6 Final lease payment 9,570 7 Bank interest rate (EAIR) 7 2 Part 1 What is the ...

To solve this problem lets first calculate the total lease payment the monthly effective rate of the ...

You need to decide whether to lease or purchase a new car for 4 years. A B

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You need to decide whether to lease or purchase a new car for 4 years.

	A	B
1	Price of car	43,000
2	Resale value after 4 years	21,500
3	Initial lease payment	4,300
4	Monthly lease payment	430
5	Number of lease payments	48
6	Final lease payment	9,570
7	Bank interest rate (EAIR)	7.2%

Part 1: What is the monthly effective rate of the lease? _____(4+ decimals)

Part 2: What is the effective annual interest rate of the lease? _____(3+ decimals)

Please show your work in excel?

Related Book For answer-question

Personal Financial Planning

ISBN: 9780357438480

15th Edition

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

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Posted Date: Apr 26, 2023 02:29 AM

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You need to decide whether to lease or purchase a new car for 4 years. A B

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Personal Financial Planning

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