A computational engineer needs a workstation for programming, and notices that he can pay $4000 for a Dell Precision Workstation, or lease from the supplier for monthly payments of $100 each for five years (paid at the end of each month). The engineer can borrow at an interest rate of 12% APR compounded monthly. Answer the following 2 questions.

a) Draw the timeline for leasing the workstation.  

b) What is the cost of leasing the workstation over buying it outright?

Answer rating: 100% (QA)

a The timeline for leasing the workstation can be represented as follows 0 1 2 3 4 5 10... View the full answer