Applying Data Analytics Skills

Lease vs$.$ Buy

Difficulty: Level $2$

You are in the process of getting a new car but are not sure if you should buy or lease. The total cost of the car is $$21,000,$ and you have a $$275$ monthly spend budget for payments. If you lease the car, the terms of the lease will be forty$-$eight months at an APR of $2\mathrm{.}25\%.$ The residual value of the car is $$8,000.$ If you buy the car, a bank will offer an APR of $2\mathrm{.}70\%$ and seven years to repay the loan. You are not required to make a down payment with either the lease or loan options, and payments are made at the end of the month for both options.

Should you lease or buy the car, given your budget limit of $$275$ a month? Create a new workbook that shows the difference between leasing and buying the car in terms of monthly payments. Your workbook should include the following:

Use proper formatting so your worksheet is easy to read.

Use column and$/$or row headings, add titles to your worksheets, and rename the worksheet tabs with appropriate labels.

You must include more than one worksheet and must utilize at least one cell reference that links data between the worksheets.

Your design must be scenario friendly such that it is clear what cells can be changed by a user to create new outputs, and cells that contain outputs should be protected so they are not inadvertently deleted.