Overhaulin'

Car loan finance question?

You wish to acquire a new car. The car will cost $30,000. You can borrow the money to buy the car from the bank. The bank will charge you 6% compounded semi-annually. The loan will be for 5 years. Payments on the loan will be made at the end of each month. As an alternative you could lease the car. The leasing company will charge 8% compounded semi-annually. The lease will be for 5 years. At the end of the lease there is a balloon payment of $15,000. The monthly payments on the lease will be made at the beginning of the month. Calculate the amount of the monthly loan payment. Calculate the amount of the monthly lease payment. interest 3% year 10

Public Comments

1. wait....what kind of car?
2. Buy the car. Leases are for suckers...which I am not. Why would I want to do your homework for you? You won't learn anything that way...WAIT! you haven't learned anything anyway or you would know how to do this problem.