Applied Math 40S May 8, 2008

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More on leasing vrs. buying a vehicle.

More on leasing vrs. buying a vehicle.

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  • 1. When you find one you like ... how much will it cost? New Car Excitement by flickr user wishymom
  • 2. Jess also looks at the option of leasing the vehicle for 3 years. The price is $24 950.00 plus PST (7%) and GST (5%). The residual value (i.e. the buyout price) is set at 48% of the new price. The down payment is $2 250.00 and the interest rate is 8.75%. (a) What is Jess' monthly lease payment? (b) How much does Jess pay for the lease in total. (c) If Jess decides to buy the truck at the end of the lease and makes a 2 year loan at 8% to pay the buy-out price, what is the total cost of the truck for her?
  • 3. * SEE NEXT SLIDE