The formulas used in the calculations are:
\[ \text{Lease Amount} = \text{Product Value} - \text{Down Payment} \]
\[ \text{Monthly Payment} = \frac{\text{Lease Amount} \times \frac{\text{Interest Rate}}{12} \times (1 + \frac{\text{Interest Rate}}{12})^{\text{Lease Term}} - \text{Residual Value} \times \frac{\text{Interest Rate}}{12}}{(1 + \frac{\text{Interest Rate}}{12})^{\text{Lease Term}} - 1} \]
\[ \text{Total Payments} = \text{Lease Term} \times \text{Monthly Payment} \]
\[ \text{Total Interest Paid} = \text{Down Payment} + \text{Total Payments} + \text{Residual Value} - \text{Product Value} \]
\[ \text{Total Cost to Own} = \text{Product Value} + \text{Total Interest Paid} \]
This calculator computes the lease amount, monthly payment, total payments, total interest paid, and total cost to own based on the input values of product value, down payment, interest rate, lease term, and residual value.
Let's assume the following:
First, calculate the Lease Amount:
\[ \text{Lease Amount} = 30,000 - 5,000 = 25,000 \]
Calculate the Monthly Payment:
\[ \text{Monthly Payment} = \frac{25,000 \times \frac{0.04}{12} \times (1 + \frac{0.04}{12})^{48} - 14,000 \times \frac{0.04}{12}}{(1 + \frac{0.04}{12})^{48} - 1} \approx 295.04 \]
Calculate the Total Payments:
\[ \text{Total Payments} = 48 \times 295.04 = 14,161.92 \]
Calculate the Total Interest Paid:
\[ \text{Total Interest Paid} = 5,000 + 14,161.92 + 14,000 - 30,000 = 3,161.92 \]
Calculate the Total Cost to Own:
\[ \text{Total Cost to Own} = 30,000 + 3,161.92 = 33,161.92 \]
Therefore, the monthly payment is $295.04, the total payments are $14,161.92, the total interest paid is $3,161.92, and the total cost to own is $33,161.92.
