You wish to lease a car. The net capitalized value is $35,000. The residual value is $15,000 in 5 years. The borrowing rate is 6%, compounded monthly. Sales taxes amount to 15%. What is your monthly lease rate if you sign a 5-year lease? You negotiate a $10,000 line of credit with your bank. They require you to pay 0.5% of the principal outstanding at the end of every month. They will also charge interest at a rate of 9% per annum, compounded monthly. You draw down $1,000 on the line on March 1st. What will be the balance of your loan on June 1st?
Lease rate
We help you get better grades, improve your productivity and get more fun out of college!!
Get Homework Answer for this question
Free title page
Free reference page
Free formatting
Unlimited revisions