1. 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?

2. 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.

4. 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

5. 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

6. 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 2

7. 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 Answer

8. 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 1

9. $13,349.81 Practice 1 Answer