Wednesday, May 7, 2008

Scribe Post

Alright, so basically we only had half of the class since we had a Grad assembly. In the last half of the class we looked over the homework we had to do last night:

Last Night's Homework
Jess also looks at the of leasing the vehicle for 3 years. The price is $24 950.00 plus PST (7%) and GST (5%). The residual value (i.e. the "buyout price") is set at 48% of the new price. The down payment is $2 250.00 and the interest rate is 8.75%.

(a) What is Jess' monthly lease payment?

(b) How much does Jess pay for the lease in total.

(c) If Jess decides to buy the truck at the end of the lease and makes a 2 year loan at 8% to pay the buy-out price, what is the total cost of the truck for her?

We also talked about the positives and negatives (Pros/Cons) of buying and leasing a car. The following image is a table of some pros/cons of buying or leasing of a car. These could also be used to help give a reasoning in questions that are given to you, (i.e. "Would it be better to buy the car or lease it." It all depends on personal preference.)

I hope this will help you understand more about personal finance. Comments are appreciated.

The next scribe will be..... . : : Яέήάή : : . .

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