When you ﬁnd
one you like ...
how much will it cost?
New Car Excitement by
ﬂickr user wishymom
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?