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#6. there is a choice to buy a car worth $32,000 with 100% financing at 3.99%...

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Finance

#6. there is a choice to buy a car worth $32,000 with 100%financing at 3.99% APR for 60 months or lease at $500 per month.The car will need maintenance in the 3rd year worth $525 and $825in the 4th year. the car will have 30% residual value in the 5thyear. sales tax on new car is 6% and required rate of return is5%.

calculate the cost of owning this car in year 4
a-$6335
b-$7164
c-$7895
d-$6850

Answer & Explanation Solved by verified expert
4.2 Ratings (783 Votes)
Cost of car 32000 APR 399 No of months of loan 60Since there is an option to purchase car with 100 financinghence loan 100 of cost of car 100 of 32000 32000Monthly rate of    See Answer
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#6. there is a choice to buy a car worth $32,000 with 100%financing at 3.99% APR for 60 months or lease at $500 per month.The car will need maintenance in the 3rd year worth $525 and $825in the 4th year. the car will have 30% residual value in the 5thyear. sales tax on new car is 6% and required rate of return is5%.calculate the cost of owning this car in year 4a-$6335b-$7164c-$7895d-$6850

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