1.) Find the interest paid on a 3-year lease for a $25750 car if the car's...
1.)
Find the interest paid on a 3-year lease for a $25750 car if the car's residual value is $17591 and the lease has an annual interest rate of 4%.
Round your answer to the nearest dollar.
2.)
Find the interest paid on a 3-year lease for a $26145 car if the car depreciates at an annual rate of 11% and the lease has an annual interest rate of 5.3%.
Round your answer to the nearest dollar.
Homework Answers
1.
Formula used:
2.
Formulas used:
Note:
Residual value :
Annual depreciation = $26,145 * 11% =2875.95.
Depreciation for 3 Years = 2875.95 * 3 = 8627.85
Residual value = $26,145 - $8,627.85 = $17,517.
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