Question

Given the below lease terms from a local car dealership, what is the total paid at the end of the lease if the dealership required a down payment, security deposit, acquisition fee at the signing and the monthly payment paid in full?

Length of lease = 48 months
MSRP of the car = 25,550
Purchase value of the car after lease = 22,900
Down payment = 1900
Monthly payment = 435
Security deposit = 475
Acquisition Fee = 300

Answer 1

The total amount paid at the end of the lease, including down payment, security deposit, acquisition fee, and monthly payments, would be $23,555.

Step-by-step explanation:

To calculate the total amount paid at the end of the lease, we need to consider several factors:

1. Down payment: $1900
2. Security deposit: $475
3. Acquisition fee: $300
4. Monthly payment: $435
5. Length of lease: 48 months

To calculate the total amount paid at the end of the lease, we add the down payment, security deposit, acquisition fee, and the total cumulative monthly payments. The total cumulative monthly payments can be calculated by multiplying the monthly payment by the length of the lease. Let's calculate it step-by-step:

1. Total cumulative monthly payments = Monthly payment * Length of lease = $435 * 48 = $20,880

2. Total paid at the end of the lease = Down payment + Security deposit + Acquisition fee + Total cumulative monthly payments = $1900 + $475 + $300 + $20,880 = $23,555

Therefore, the total paid at the end of the lease would be $23,555.