The monthly lease payment for the real estate broker's car is approximately 1,652.28.
Here's how to calculate the monthly lease payment for the real estate broker's car lease:
1. Determine the Principal Amount:
Subtract the down payment from the negotiated price: 49,000 (negotiated price) - 4,000 (down payment) = 45,000 (principal amount)
2. Calculate the Residual Value:
Multiply the MSRP by the residual value percentage: 51,500 (MSRP) x 49% = 25,235 (residual value)
3. Convert the Annual Interest Rate to Monthly:
Divide the annual interest rate by 12: 7.8% / 12 = 0.65% (monthly interest rate)
4. Apply the Lease Payment Formula:
Use the formula: Monthly payment =
where:
P is the principal amount (45,000)
RV is the residual value (25,235)
i is the monthly interest rate (0.0065)
n is the lease term in months (36)
5. Calculate the Monthly Payment:
Plug the values into the formula:
Monthly payment = [(45,000 - 25,235) * (((0.0065)
/
- 1))]
Monthly payment ≈ 1,652.28
Therefore, the monthly lease payment for the real estate broker's car is approximately 1,652.28.