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Personal Finance 1 Worksheet 9

Personal Finance 1 Worksheet 9 - $4,992 i Opportunity cost...

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W9 Cost of Purchasing a. Agreed-upon purchase price $11,000 b. Down payment $2,000 c. Total loan payments (monthly loan payment x ___ no. months) $10,440 d. Opportunity cost of down payment $696 e. Less: Expected market value of the car ar the end of the loan $5,000 f. Total cost of purchasing $8,136 Cost of Leasing g. Down payment (capitalized cost reduction) + security deposit $2,500 h. Total lease payments (monthly lease payment x ___ no. months)
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Unformatted text preview: $4,992 i. Opportunity cost of total initial payment $1,128 j. Any end-of-lease charges (e.g., excess mileage), if applicable $0 k. Less: Refund of security deposit $500 l. Total cost of leasing $8,120 Leasing the vehicle saves you $17 WORKSHEET FOR THE LEASE VERSUS PURCHASE DECISION [line b x (1 + foregone rate of return (number of years) )] [line g x (1 + foregone rate of return (number of years) )]...
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