Question: please note that this is one question that end on another page 60. Calculating Annuity Values (L01) After deciding to buy a new Me Class

please note that this is one question that end on another page

60. Calculating Annuity Values (L01) After deciding to buy a new Me Class sedan, you can either lease the car or purchase it on a three-year loa wish to buy costs $35,000. The dealer has a special leasing arrangement wher new Mercedes-Benz euear loan. The car you ment where you pay $99 today and $499 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at a 6 percent APR compounded monthly. You believe you will be able to sell the car for $23,000 in three years. Should you buy or lease the car? What break-even resale price in three years would make you indifferent between buying and leasing

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