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Logic, Decision Making, and Introduction Statistics BUYING 1. Choose car that you wish to own, and find theprice of this car. Forthis example only consider new cars purchase from adealership. This will beyour principal value P. Principal, 2. Research available interest rates on this particular car This will be cherater. Rate in decimal form, 3. Decide how long you would liket taketo pay off this car. Choose within 2to Syears. This will be che time Time,t ?years 4. The simple interest formula, I-Prt cantell vou how much incerest willbe added to the principal amount of chis loan. Calculate the interest on your loan Interest, Show your work here: 5. How repaying overthe lifeo your loan? Total repayment $ Show your work here: 6. How muchare your monthly payments? Monthly payments $ Show your work here: 7. Assume that you have dowil payment based on the original purchase priceof thecar. How much will yoube putting downl What is the new value of Pon your lease? Down payment, $ New value, P $ Shov your work here: 8. With the downlpayment what will the new monthly paymentsbe New monthly payment Show your work here: LEASING Now conside the aption tolease this same car. 0. The appeal of lease isalowerinterest rata Subtract 3% from the original interest rata (from Step2). fyour auswer is less than 0.6% useche minimum rate of 0.6% Reduced rate decimal form,r 10. The length of alease is typically 3-7 years. Choose how long yeu wish lease chis car Lease time, ?years 11. The monchly payment on alease accounts for the depreciation of che car's value Assuine that atthe end of yourlease the car has only retained 50% ofits original value(50% your auswer Step 1). What your car'svalue the endo the lease? Use this for vour new value of P. New value, P Show your work here: 12. How much interest willyou be over the course of this lease? Interest,/ Show your work here: 13. What is your cotal cost- -in other words principal plus interest? Total cost $ Show your work here: 14. How muchia your monthly payment? Monthly payment Shov your work here: 15. Artheend of the leare, voudenot ownithecar. H vou wisht purchase the car. vou would still Owe the valu from Stap 11 this peint you could walk away assuming hecar isin perfect condition and ignoring mileage fees What are the benefics and walking (away from chiscar? Explain your answer here: 16. Inscead of walking away vou could also purchase the carior whatiti new worth plus the interest Using Prom Step 11, r from Step 2 and from Step calculate how much you would repay over the courseol this new loam. Interest Total repayment $ Show here: 17. Artheend ofthe lease how Tuch didyoupayintotalforthecar? Besuretoincludethe lease Step 13. along with the purchase price from 16. Total cost of the car Show your work here: 18. Would you consider leasing car? Discuss the advantages and disadvantages ofbuying versus leasinga Explain your answer here:

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1. Principal, P $23,000.00
2. Rate in decimal form, r 0.0371
3. Time, t 5 years...

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