Take out your filled in car homework. You will use your homework to fill in information on the excel sheet.

PERIOD |
EXCELMONTHLY PAYMENT |
TOTALLOAN COST OVER THE LIFE OF THE LOAN |
FIRST YEAR'S TOTAL INTEREST |
TOTAL INTEREST OVER THE LIFE OF THE LOAN |

36 |
||||

formulas |
||||

formulas cont. |
||||

48 |
||||

60 | ||||

72 |

Use these to figure out your necessary income by looking up "dept-to-income ratio" in the textbook.

LOAN PERIOD | ANNUAL INCOME | FORMULA USED TO SOLVE FOR THE INCOME |

36 | ||

48 | ||

60 | ||

72 |

Use your car hw sheet, Edmund's worked example of the 2000 Honda Accord EX V6 (on the above web page) and a calculator to determine the monthly lease payment for your car by filling in the table below.

Capitalized Cost (the invoice price + $500 +any options) ie the price before the destination charge and before the sales tax is added. | $ |

Destination Charge | $ |

Acquisition Fee | $ |

Security Deposit (refunded at end of lease) | $ |

Capitalized Cost Reduction (security deposit + acquisition) | $ |

Total Payment Due at Lease Signing (destination charge + capitalized cost reduction) | $ |

Residual Value after 3 years (57% of MSRP in this example) | $ |

Term Depreciation (Capitalized Cost - Residual Value) | $ |

Money Factor (Interest Rate on your car homework divided by 24) | $ |

Monthly Lease Rate (Capitalized Cost + Residual Value) x Money Factor | $ |

Monthly Depreciation (Term Depreciation divided by Lease Term of 36 months) | $ |

State Sales Tax on Payment (Monthly Depreciation + Monthly Lease Rate) x Sales Tax Rate of 3% | $ |

State Sales Tax on Capitalized Reduction Capitalized Cost Reduction x (Sales Tax Rate of 3% / Lease Term of 36) | $ |

Monthly Payment (Monthly Depreciation + Monthly Lease Rate + State Sales Tax on Payment + State Sales Tax on Capitalized Reduction) | $ |