Assume you are offered a lease for a car with $227 monthly payments for 36 months after a $2,540 up front (down) payment. The alternative

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Assume you are offered a lease for a car with $227 monthly payments for 36 months after a $2,540 up front (down) payment. The alternative is that you can buy the car for $31,000 and make a $3,200 down payment with 60 payments at 2.49% interest. At the end of the 36 months you would be able to sell the car for $22,750. Assume that at the end of 36 months you will make the decision to give the car up. Further, assume the car dealership requires $0.15 per mile over 20,000 on the car. If you expect to drive the car for 22,319 miles, what is the Net Advantage to Leasing?

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