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    jillblacky8's Avatar
    jillblacky8 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 14, 2008, 03:23 PM
    Finance using EAC and discount rates.
    You have just graduated from AIC and your college "clunker" died immediately after receiveing your diploma. You head to the BMW dealership and look at a brand new BMW 330xi turbo charged coupe. You can buy the care now for $42,000. You will hold the car for 5 years and will sell it at the end of the 5 year period for $10,500. You can lease the car for $7,000.00 per year. Assume a discount rate of 12%. Using EAC, should you lease or buy the car?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Apr 14, 2008, 03:27 PM
    I wouldn't touch this with a barge pole as the insurance alone would be crippling straight out of college ;)

    Ps as this is homework, please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html
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