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 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. 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 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 Answer

Tashira Conley leased a minivan for family use. She pays $ per month for 39 months. Her deposit was $1, She paid a $57.50 title fee and a $48.50 license fee. What is her total least cost? Example 2

Step: Find the total lease cost. (39 × $229.00) + $1, $ $48.50 $8, $1, $ $48.50 = $10, Example 2 Answer

Lease: Four-door car for 48 payments of $ per month. Deposit: $ Title fee: $60. License fee: $75. What is the total lease cost? Practice 1

$13, Practice 1 Answer