You are thinking about leasing a car. The purchase price of the car is $33000. The residual value (the amount you could pay to keep the car at the end of the lease) is $15000 at the end of 36 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 6.75 APR, compounded monthly. What will be your lease payment for a 36 month lease?© BrainMass Inc. brainmass.com June 4, 2020, 5:01 am ad1c9bdddf
Monthly interest 0.005625
Residual value $15,000
Monthly lease payment ...
This solution involves computing monthly lease payment in Excel.