The Open Road A vehicle can be a symbol of freedom, but it requires responsibility. What...
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The Open Road A vehicle can be a symbol of freedom, but it requires responsibility. What responsibilities come along with owning and operating a vehicle?
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Transcript of The Open Road A vehicle can be a symbol of freedom, but it requires responsibility. What...
The Open Road
A vehicle can be a symbol of freedom, but it requires responsibility.
What responsibilities come along with owning and operating a vehicle?
Lesson Objective
Calculate the total cost of leasing a vehicle.
Content Vocabulary
leaselease
An agreement for the use of property, such as a building or vehicle, usually on an annual basis.
lease
An agreement for the use of property, such as a building or vehicle, usually on an annual basis.
closed-end lease
open-end lease
closed-end lease
A contract that allows you the use of property, such as a vehicle, for a set time period by making a specified number of payments.
closed-end lease
A contract that allows you the use of property, such as a vehicle, for a set time period by making a specified number of payments.
open-end lease
A contract allowing you the use of property, such as a vehicle, for a set time period by making a specified number of payments. At lease end, you can purchase the item for its residual value.
open-end lease
A contract allowing you the use of property, such as a vehicle, for a set time period by making a specified number of payments. At lease end, you can purchase the item for its residual value.
Ralph Dunn leased a pickup truck for use in his lawn care business. He pays $199 per month for 60 months. His deposit was $2,500. He paid an $80 title fee and a $45 license fee.
What is his total lease cost?
Example 1Example 1
Step: Find the total lease cost.
(Number of Payments × Amount of Payment) + Title Fee + License Fee
(60 × $199) + $2,500 + $80 + $45
$11,940 + $2,500 + $80 + $45 = $14,565
Example 1 AnswerExample 1 Answer
Tashira Conley leased a minivan for family use. She pays $229.00 per month for 39 months. Her deposit was $1,000.00. She paid a $57.50 title fee and a $48.50 license fee.
What is her total least cost?
Example 2Example 2
Step: Find the total lease cost.
(39 × $229.00) + $1,000.00 + $57.50 + $48.50
$8,931.00 + $1,000.00 + $57.50 + $48.50 =
$10,037.00
Example 2 AnswerExample 2 Answer
Lease: Four-door car for 48 payments of $269.69 per month.
Deposit: $269.69.
Title fee: $60.
License fee: $75.
What is the total lease cost?
Practice 1Practice 1
$13,349.81
Practice 1 AnswerPractice 1 Answer
