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FIN - Sam has saved $5,000 that will be a down payment on a new car

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Question;Sam has saved $5,000 that will be a down payment on a new car that can be purchased for $38,000.Sam has been offered a lease for this car with payments of $600 a month for 5 years. There would not be any down payment. As happens with leases, she would essentially receive the full value of the car today and she would return the car to the dealer at the end of the lease (essentially paying out the value of the car at that time). The value of this car in 5 years, with no damage or excessive mileage, is expected to be $12,000. What APR with monthly compounding would she be paying?

 

Paper#49566 | Written in 18-Jul-2015

Price : $22
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