Question: A manufacturers sales rep can lease an automobile for five years at $385 per month payable at the beginning of each month, or purchase it

A manufacturer’s sales rep can lease an automobile for five years at $385 per month payable at the beginning of each month, or purchase it for $22,500. He can obtain a loan at 9% compounded monthly to purchase the car. Should he lease or buy the car if:
a. The trade-in value after five years is $5000?
b. The trade-in value after five years is $7000?

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