1. Grace likes the idea of making only a $1,500 down payment. If the Paganellis can get the same 6.50 percent interest rate on the lease, which would be the better deal, to purchase or lease a $24,900 vehicle? (Assume that the vehicle depreciates 19 percent per year, they could invest the down payment difference at 4 percent interest, and they would not incur any penalties at the end of the lease.) Use the Buy or Lease? Calculator to make your recommendation.

Answer rating: 100% (QA)

To establish whether Grace and the Paganellis should lease or purchase a 24900 vehicle with an interest rate of 65 percent for at least four years we ... View the full answer