Leasing a car. The price of the car is$45,000. You have $3000 for a down payment. The term of the lease is and the interest rate is 3.5% APR. The buyout on the lease is51% of its purchase price and it is due at the end of the term. What are the monthly lease payments (before tax)?

Question

Leasing a car. The price of the car is​$45,000. You have ​$3000 for a down payment. The term of the lease is and the interest rate is ​3.5% APR. The buyout on the lease is​51% of its purchase price and it is due at the end of the term. What are the monthly lease payments​ (before tax)?

t1te3or · Accepted Answer

C/Y = number of times interest is compounded in a year = 12P/Y = payments per year = 12P/V = Cost of car - down payment = 45,000 - 3,000 = 42,000F/V = - 51% of purchase price = - 51% x 45,000 = - 22,950N = 4 x 12 = 48I/Y = 3.5%Monthly payment = output on the calculator = 492.82