Question

Matching.

1. Equity
2. Lease
3. Residual
4. Anniversary year
5. Base value
6. Depreciation

a) contract granting use of a car for a specific time period in return for monthly payments
b) original value or cost of car
c) decrease in the value of a car with time and use
d) number of years ago car was bought new
e) the car's value at the end of the lease
f) the value of the property

Answer 1

1.f) the value of the property
2.a) contract granting use of a car for a specific time period in return for monthly payments
3.e) the car's value at the end of the lease
4. d) number of years ago car was bought new
5.b) original value or cost of car
6.c) decrease in the value of a car with time and use

Answer 2

1. Equity- the value of the property. Equity can be defined as a difference between assets and liabilities of owned things. Its the ownership interest in some business.

2. Lease - contract granting use of a car for a specific time period in return for monthly payments. When we say we have leased out a property, we mean, we have given that on rent and we are taking monthly charges for the same.

3. Residual - the car's value at the end of the lease. Residual value means the left out value of anything after the lease period is over.

4. Anniversary year - number of years ago car was bought new. The year in which something was bought.

5. Base value - original value or cost of car. Base value is the original price of anything. It is also called base price.

6. Depreciation - decrease in the value of a car with time and use. This means decrease in the value of anything that is being used like automobile or machinery. The value decreases due to wear and tear.