How Is Penelope's Monthly Lease Payment Calculated?

[Larrytsai]

Penelope wants to buy a car that is worth $43,195 by making a $4300 down payment and arranging a four-year lease
that calls for monthly payments in advance, interest of 2.91 percent compounded monthly, and a buyout payment of
$20,000 at the end of the lease. Calculate the amount of the monthly lease payment Penelope must make.


So what I thought of doing is

I subtract

43195 - 4300 - PRESENTVALUE OF (20000) = A[1-(((1+(0.0291/12))^-48))/]

PRESENTVALUE OF (20000) = 20000/((1+(0.0291/12))^48) = 17804.89

I get A = 465,

Im not sure if this is right, the solution saids 464.85, I carried all my decimals in my calculations as well.

 

[vela]

Penelope wants to buy a car that is worth $43,195 by making a $4300 down payment and arranging a four-year lease
that calls for monthly payments in advance, interest of 2.91 percent compounded monthly, and a buyout payment of
$20,000 at the end of the lease. Calculate the amount of the monthly lease payment Penelope must make.


So what I thought of doing is

I subtract

43195 - 4300 - PRESENTVALUE OF (20000) = A[1-(((1+(0.0291/12))^-48))/]

Your equation seems to be missing some factors.

PRESENTVALUE OF (20000) = 20000/((1+(0.0291/12))^48) = 17804.89

I get A = 465.

I'm not sure if this is right. The solution said 464.85. I carried all my decimals in my calculations as well.

My calculations come up with 464.85. Without seeing the details of your calculation, it's impossible to say what went wrong.