Question

- Length of lease: 32 months

- MSRP of the car: $26,260
-Purchase value of the car after lease: $14,330
- Down payment: $1270
- Security deposit: $605
- Acquisition fee: $765
-Lease factor: 0.00073

1. What is the amount of cash due at signing?

2. What would be his monthly payments?

3. What is the total amount of money that he would spend on monthly payments

4. What is the total amount of money that he would spend on monthly payments?

5. What is the total cost of leasing the car, assuming that he does not get the security deposit back

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Answer 1

The amount of cash due at signing is $2640. The monthly payments would be $215.54. The total cost of leasing the car would be $9536.48.

Step-by-step explanation:

To calculate the amount of cash due at signing, you need to add up the down payment, security deposit, and acquisition fee. In this case, the cash due at signing would be $1270 + $605 + $765 = $2640.

To calculate the monthly payments, multiply the MSRP of the car by the lease factor. Then subtract the purchase value of the car after lease. Finally, divide this result by the length of the lease in months. In this case, the monthly payments would be ($26,260 x 0.000731 - $14,330) / 32 = $215.54.

The total amount of money spent on monthly payments can be found by multiplying the monthly payment by the length of the lease. In this case, the total amount would be $215.54 x 32 = $6896.48.

The total cost of leasing the car, assuming the security deposit is not returned, can be found by adding the cash due at signing to the total amount spent on monthly payments. In this case, the total cost would be $2640 + $6896.48 = $9536.48.