Co nit & Financial Literacy BOL PCMath1 1 - Rev. July 2020 Lesson Five - Lease, Loans, or Cash For the following questions you will need to figure out whether you can calculate the solutions using a regular calculator or TVM Calculator. 1. Hansel and Gretel need a new car that they will use for part of the year [ December through March] for the next five years. They are trying to decide if it would be best to: a) rent a car for $45 per day plus $8.75 per day for insurance b) sign a short term lease and get a similar car for $1275 per month plus $129 per month for insurance c) purchase the same car new for $23000 with insurance costing $500 per year. If they purchased the car it would have to be stored for $60 per month when it was not in use. Determine the cost of each option. Note: One of the years is a leap year (Feb would have 29 days) a) 2 marks b ) 2 marks C) 2 marks