You Have Shopped for a New Car and the Best

question 23

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 monthly payments of $249 and a residual value of $7,500. The interest rate that the bank would charge you to borrow money is 9%(APR) . What is the NPV of the lease arrangement? (Approximately) (Ignore taxes)

• A) $1,439
• B) $1,380
• C) $406
• D) None of the above

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Definitions:

Test Validity

The degree to which a test accurately measures what it is intended to measure, ensuring that the test results are relevant and meaningful for its purpose.

Test Reliability

The degree to which an assessment tool produces stable and consistent results over repeated applications.

Hostile Work Environment

A form of sexual harassment when an employee experiences workplace harassment such as provocative pictures that make the environment an offensive place to work.

Quid Pro Quo

A form of sexual harassment that means “in exchange for this, I’ll give you that.”