Calculating payments when there is a left over residual value??? help please :)
The MSRP on a new Bose stereo system is $38,700. The interest rate on a 48-month lease is 1.9% compounded monthly. What is the monthly lease payment assuming a down payment of $5,350 and a residual value of $11,850?
Round your final answer to 2 decimal places, do not include a $ sign or a comma.
So this is what I'm doing, I'm subtracting the down payment from 38700.... to get 33350
taking that at finding the future value of it: 33350 (1.001583333)^48 = 35981.23862
Subtracting the residual value of 11850 to get 24131.23862
Then finding the payments of an anuity using that as my future value... looking like this: 24131.23862((1.001583333)^48 -1 /.001583333) = 484.27 after rounding up..
Apparently this is wrong though and i have no idea what I'm doing wrong. Any help would be greatly appreciated. thanks a lot!
Re: Calculating payments when there is a left over residual value??? help please :)
484.27 is correct.
Unless the 1.9% is monthly, meaning 22.8% annual cpd monthly;
that would be monthly payment of $911.90