Question

Given below are lease terms at the local dealership. What is the total cash due at signing?

Terms:

Length of lease = 24 monthsMSRP of the car = $17,500Purchase value of the car after lease = $9900Down payment = $2400Monthly payment = $425Security deposit = $375Acquisition fee = $500

Answer 1

Step-by-step explanation:

It is given that below are lease terms at the local dealership:

Let C be the total cash due at signing, D be the down payment, M be the monthly payment, S is the security deposit and A be the Acquisition fee, thus

D=$2400,

M= $425,

S= $375 and

A=$500

Now, The total cash due at signing consists of the down payment, Security deposit, Monthly payment and Acquisition fee in case of the local dealership, thus

`C=D+M+S+A`

`C=2400+425+375+500`

`C=$3700`

Therefore, The total cash due at signing will be $3700.

Answer 2

Answer: $3,700

Step-by-step explanation:

Let


`C = \text{total cash due at signing} \\ \indent D = \text{Down payment} = \$ 2400 \\ \indent M = \text{Monthly payment} = \$ 425 \\ \indent S = \text{Security deposit} = \$ 375 \\ \indent A = \text{Acquisition fee} = \$ 500`

Note that the total cash due at signing a lease includes down payment, first monthly payment, security deposit and acquisition fee. So, the total cash due at signing is given by

C = D + M + S + A
= 2,400 + 425 + 375 + 500
C = $3,700