Question

BMW X5 sells for 80700. The manufacturer offers an interest rate of 7.49% compounded monthly on a 48-month lease. If the residual value is 33087, find the lease payments assuming a 5000 down payment. The first monthly payment starts today

Answer 1

The monthly lease payment for the BMW X5 is $1,489.03.

Step-by-step explanation:

To find the lease payments for a BMW X5, we can use the formula for calculating the monthly payment on a loan. The formula is:

P = (PV * i) / (1 - (1+i)^(-n))

Where P is the monthly payment, PV is the present value (selling price minus down payment), i is the interest rate per period, and n is the total number of periods. In this case, PV = $80,700 - $5,000 = $75,700, i = 7.49% / 12 = 0.6242% per month, and n = 48. Plugging these values into the formula, we get:

P = ($75,700 * 0.6242%) / (1 - (1+0.6242%)^(-48)) = $1,489.03

Therefore, the monthly lease payment for the BMW X5 is $1,489.03.