ITM 501 - Class 3.docx - ITM 501 In Class practice Week 3...

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ITM 501In Class practiceWeek 3Please solve following problems and upload the solved problems into D2L. Submissionfolder is in Assignment section under Assessment section of the course shell in D2L.1.Beverly Mills has decided to lease a hybrid car to save on gasolineexpenses and to do her part to help keep the environment clean. The car she selectedis available from only one dealer in the local area, but that dealer has several leasingoptions to accommodate a variety of driving patterns. All the leases are for 3 yearsand require no money at the time of signing the lease. The first option has a monthlycost of $330, a total mileage allowance of 36,000 miles (an average of 12,000 milesper year), and a cost of $0.35 per mile for any miles over 36,000. The following tablesummarizes each of the three lease options:3-YEAR LEASEMONTHLY COST$MILEAGEALLOWANCECOST PEREXCESS MILE($)Option 133036,0000.35Option 238045,0000.25Option 343054,0000.15Beverly has estimated that, during the 3 years of the lease, there is a 40% chance

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Term
Fall
Professor
SelchukSavas
Tags
Beverly Mills

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