a) You are leasing a new BMW 228i. You found you can lease one in Los...
a) You are leasing a new BMW 228i. You found you can lease one in Los Angeles for $449 a month for 36 months. In addition, you must pay $4,499 down on the lease. How much are you going to spend on the lease over 36 months?
b) What is the PV of all the monthly payments plus the down payment on the BMW lease? Assume an interest rate of 4.8% annually
Homework Answers
a)
Total spending on lease = $449×36 = $16,164
b)
Total present value is $19,525.18 ($4,499+$15,026.18)
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