Question: 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

  1. 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.

    1. a) Draw the timeline for leasing the workstation. 2

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

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