Question

You are thinking about leasing a car. The purchase price of the car is $27,000. The residual value​ (the amount you could pay to keep the car at the end of the​ lease) is $15,000 at the end of 36 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 5% APR, compounded monthly. What will be your lease payments for a 36​-month lease? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)

Your monthly lease payments will be $____

Answer 1

Function Arguments ? x PMT 5%/12 Rate Nper Pv Fv Type 1 1 1 = 0.004166667 = 36 27000 -15000 o 1 1 = 27000 = -15000 = 0 = -422.1507653 Calculates the payment for a loan based on constant payments and a constant interest rate. Type is a logical value: payment at the beginning of the period = 1; payment at the end of the period = 0 or omitted. Formula result = $422.15 Help on this function OK Cancel

Hence, Monthly lease payment is $422.15

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