Final answer:
The question involves solving a financial math problem to find the monthly lease payments for a car using the provided formula. Examples given for reference include calculating monthly payments for a home loan and the time it takes to pay off a car loan with different monthly payments.
Step-by-step explanation:
The monthly lease payment formula provided is a financial math problem that calculates the monthly payment on a lease when the present value (Pv), the future value (Fv) of the car at the end of the lease, the duration of the lease in months (n), and the annual interest rate (i) are known. To solve for the monthly lease payment of a car with a present value of $38,000 and a future value of $23,400 on a 36-month lease, we need to substitute these values into the formula along with the annual interest rate.
Let's use an example problem provided for reference: calculating monthly payments for a $300,000 loan with a 6% interest rate convertible monthly over 30 years. Using the formula PV = R / [1-(1+i)-n/i], where R is the monthly payment, we can solve for R after inputting Pv = $300,000, n = 30*12 months, and i = 6%/12 per month. Moreover, paying an extra month's payment each year can significantly reduce the time and total interest paid on the loan.
To illustrate another example, if you have a $20,000 car loan with a 6% annual interest rate converted monthly and you make monthly payments of $500 or $100, the time to pay off the loan can be calculated by rearranging the loan payment formula to solve for n.