What is the total cost of a 60-month vehicle lease with the terms described in the table?
| | Cost |
| :-------------------- | :------ |
| Monthly Fee | $350 |
| Deposit | $2,500 |
| Registration and Title | $300 |
| Disposition Fee | $350 |
| Acquisition Fee | $500 |
Answer (2)
Calculate the total monthly fees: 60 × $350 = $21 , 000 .
Add the deposit: $21 , 000 + $2 , 500 = $23 , 500 .
Add the registration and title fee: $23 , 500 + $300 = $23 , 800 .
Add the disposition and acquisition fees: $23 , 800 + $350 + $500 = $24 , 650 . The total cost is $24 , 650 .
Explanation
Understanding the Problem We need to calculate the total cost of a 60-month vehicle lease. We are given the monthly fee, deposit, registration and title fee, disposition fee, and acquisition fee. We will calculate the total cost by summing up all the individual costs.
Calculating Total Monthly Fees First, we calculate the total cost of the monthly fees over the 60-month lease: 60 months × $350 per month = $21 , 000
Adding the Deposit Next, we add the deposit: $21 , 000 + $2 , 500 = $23 , 500
Adding Registration and Title Fee Then, we add the registration and title fee: $23 , 500 + $300 = $23 , 800
Adding Disposition Fee Next, we add the disposition fee: $23 , 800 + $350 = $24 , 150
Adding Acquisition Fee Finally, we add the acquisition fee: $24 , 150 + $500 = $24 , 650
Final Answer Therefore, the total cost of the 60-month vehicle lease is $24 , 650 .
Examples
Leasing a vehicle involves various costs, similar to other financial transactions. For instance, when renting an apartment, you typically pay a monthly rent, a security deposit, and sometimes additional fees like application or move-out fees. Understanding how to calculate the total cost, including all fees, helps you budget effectively and compare different leasing options, ensuring you make an informed financial decision. This is also applicable when subscribing to services, where you might have a monthly fee plus activation or cancellation fees.
The total cost of a 60-month vehicle lease is $24,650, calculated by summing the monthly fees, deposit, registration and title fee, disposition fee, and acquisition fee. The breakdown involves calculating the total monthly fees, adding the deposit, and the additional fees step by step. The final total includes all these amounts to arrive at the total lease cost.
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