Question

Benjamin secured a 3-year car lease at 5.90% compounded annually that required her to make payments of $880.17 at the beginning of each month. Calculate the cost of the car if she made a downpayment of $2,000.

Answer 1

To find the cost of the car Benjamin leased, multiply the monthly payment of $880.17 by 36 (number of months in 3 years) and add the $2,000 down payment to get a total of $33,686.12.

Step-by-step explanation:

To calculate the cost of the car that Benjamin leased, we first need to determine the total amount of the monthly payments she made over the 3-year period. Since Benjamin made payments of $880.17 at the beginning of each month, we would multiply this monthly payment by the number of months in 3 years (36 months) to determine the total amount paid over the lease term. However, a down payment is also given, which will need to be added to the total lease payments to get the total cost of the car.

So, the total lease payments would be 36 months * $880.17/month = $31,686.12. Adding the down payment of $2,000, the cost of the car would be $31,686.12 + $2,000 = $33,686.12.