You Have Shopped for a New Car, and the Best

question 52

Multiple Choice

You have shopped for a new car, and the best purchase price you can get is $15,000. You have been offered a lease with 36 month-end payments of $249 and a residual value of $7,500. The interest rate that the bank would charge you to borrow money is 9 percent (APR) . What is the NPV of the lease arrangement? (Ignore taxes.)

• A)$1,439
• B)$1,380
• C)$406
• D)$1,338

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Definitions:

Flexible Benefits Plan

A benefits plan that allows employees to choose from a variety of pre-tax benefit options based on their specific needs, such as healthcare, retirement savings, and childcare.

Benefit Format

The structure or manner in which employee benefits are organized, offered, and communicated within an organization.

Employment Insurance

A government program offering temporary financial assistance to unemployed workers who meet certain eligibility criteria.

Legally Required

Mandates or obligations imposed by law that individuals, organizations, or entities are required to follow.