00:01
Find the monthly payments.
00:02
Our monthly payment is equal to our depreciation fee plus our interest expense.
00:09
Let's find our depreciation fee.
00:12
We're going to take our value for loan 26 ,025 minus 1 ,868 divided by the amount of months and four years.
00:28
So the amount of months and four years is equal to 48.
00:32
So let's go ahead and plug that into a calculator.
00:36
That is our 26025 minus 18268 divided by 48.
00:44
We get 161 .6 per month.
00:48
Now our interest expense is equal to our cost plus a residual factor times our money factor.
00:56
Let's first find our money factor.
00:58
That's our interest rate or 0 .00.
01:03
Our interest rate of 40 .04 divided by, since we have an annual interest rate of four percent, so we divide this by 24.
01:27
So we have our value of 0 .04 divided by 24.
01:32
That's 0 .00016.
01:35
So now we can find our interest.
01:39
Our interest is then going to be equal to our 26025 plus 18268 times 0 .00016.
01:50
So 26025 plus 18268 times 0 .00016.
02:00
We get 7 .086.
02:03
Now we can find our monthly payment.
02:05
Our monthly payment is then our 161 .6 plus 7 .08.
02:11
We end up with 168 .6 dollars.
02:20
Now for part b we have another question that says find the monthly payments on a four -year lease for 27 ,583 if it depreciates at 15 percent and the lease has an annual interest of 3 .4 percent.
02:38
Okay so let's go ahead and calculate the depreciation per month.
02:46
That's going to be 27 ,583 times our depreciation rate of 15 percent divided by 12.
02:54
So we have 27 ,583 times 15 percent divided by 12.
03:06
We get 344 .7 per month.
03:10
Now let's find our depreciation for our first year...