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Mathematics, 15.11.2019 02:31 adrianaglass12
4. bob is planning to lease a vehicle to use for his business. the lease has the following terms:
• term: 5 years
• monthly payments: $295.00
• security deposit: $500.00
• delivery charge: $415.00
• kilometre allowance: 25 000/year ($0.15/km for each additional kilometre)
*the residual value at the end of the lease term is $10 500.00 (including taxes and fees)
a) how much will it cost to lease the vehicle over a 5-year term? assume bob returns the
vehicle in good condition, having driving 130 000 kilometres.
b) if bob purchases the vehicle at the end of the lease, how much will he have paid for it?
(remember, he won't pay a penalty for kilometres if he purchases the vehicle after the
lease.)
c) if he buys the vehicle outright instead of leasing it, it will cost $21 000, including taxes and
fees. what is the difference in price between purchasing the vehicle outright and the price if
he buys out the lease as in part 'b'?
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Answers: 2
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4. bob is planning to lease a vehicle to use for his business. the lease has the following terms:
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