### What is the cost of leasing the car over entire lease term

Assignment Help Finance Basics
##### Reference no: EM132183869

You have found the car you want for the right price. All along, you have told the dealer that you want to purchase the car. It will cost you \$45,000 out the door. You will put 25% down and take out a 4- year car loan. The interest rate you got from a local bank is 2.99% for 48 months.

You made the deal and now you need to "finalize" the paperwork with the dealer's finance officer. He offers you an opportunity to lease the car and save you money every month! What a deal!! Here are the terms:

• Capitalized cost \$4,500
• Lease payments \$399
• Security deposit = 2 lease payments
• Lease term: 48 months
• Mileage cap: 10,000
• Mileage charge if over the cap: \$0.25/mile
• Residual value: \$22,500

Your savings account pays you 0.80% per year. You typically drive 13,000 miles per year. You plan on bringing the car back in perfect condition and expect to get your deposit back.

2. What is the cost of leasing the car over the entire lease term?

#### Why do you think that banks give bid

Why do you think that banks give bid and ask rates when dealing with each other? why don't they state their intentions as they do when dealing with foreign exchange brokers?

#### Cash versus stock payment

Eastman Corp. is analyzing the possible acquisition of Kodiak Company. Both firms have no debt. Eastman believes the acquisition will increase its total after tax annual cas

#### What is the financial break-even level for the project

Assume the equipment is depreciated on a straight-line basis over the project's life. What is the accounting break-even level for the project? What is the financial break-ev

#### Find the velocity of the center of the cylinder

A rope is wrapped around a cylinder of radius Problems r and mass m as shown. Knowing that the cylinder is released from rest, determine the velocity of the center of the cy

#### Find the amount of the loan

An automobile company, Nissan, as temporary cash surplus and lends its funds overnight through a repurchase agreement to a government securities dealer, earning \$55,600 in int

#### Which alternative is best if the minimum attractive rate

The table includes the overall ROR and the incremental comparison of alternatives. Which alternative is best if the minimum attractive rate of return is ( a ) 15% per year a

#### Examine advantages of financing with portfolio of currencies

Compare two methods that a company can use in order to finance international trade. Examine the advantages and disadvantages of financing with a portfolio of currencies.

#### Which one of the three risky funds do you choose

Choosing One Portfolio. The following table shows your predictions of the future returns on three mutual funds. Treasury Bills currently earn 4%. To invest all your wealth, yo