What is perhaps the most important item shown on the disclosure statement Why

What is perhaps the most important item shown on the

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1.What is perhaps the most important item shown on the disclosure statement? Why?
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2.What is included in the finance charge? 3.What amount will Sue receive from the bank? 4.Should Sue borrow from bank A or bank B? Why? 1.Pick out a new car that you are interested in. What did you choose and why? 2. Research the purchase costs and the leasing costs for the car. You can research this by looking at currently running advertisements in the paper or online at car manufacturer websites, or talking to a dealer. You can also see leasing and buying incentives at - incentives/ . You can find current interest rates for car loans at - rates.aspx (recall that you learned how to find a loan payment using present value in Chapter 1), and you can use an opportunity cost of 3 percent. You can find value of car
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at end of a loan term at . Report on your numbers and your source(s) of information. The net price for buying and leasing the Jeep Wrangler Unlimited is the same. For Leasing you would need to pay $214 a month, for 48 months. The residual value at the end of 48 months would be $19,175. With a 72-month contract for buying the Wrangler, you would pay $405 a month with a APR of 4.04%. With a down payment of $2,869 (10%) the estimated amount financed will be $25,821. The 4.04% APR is based on the duration of the loan and if you borrow from Chrysler. Borrowing from a third party averages at 6.47%. Edmunds.com shows you can save up to $3,881 when buying the Wrangler as well. 0% APR Financing for 60 months plus $1,000 totla cash allowance 3. Analyze, from a financial perspective, whether it is better to buy or lease the car. Use the Figure it Out on page 199 and Personal Financial Plan on page 215 as your guide, and show your full calculations. What is the total cost to buy?
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