Problem #II:

Ben is considering purchasing a $2024$ Toyota Tundra SR $5$ for $$39,965.$ The dealer is offering the following three options to own or lease the vehicle. If he plans to change his car every three years, which option would you recommend? Why?

Additional Information:

Residual Value $($Resale Value$)=$$$19,120$

$($Note: Please exclude any personal property taxation and inflation from your calculations.$)$

Option $1.$ Since Ben just graduated college, he can receive a $$500$ instant cash rebate from the MSRP and purchase the car outright in cash. Dealer

fee and sales taxes will be $$2,633\mathrm{.}68.$

Option $2.$ Finance the vehicle for $48$ months at $6\mathrm{.}55\%$ annual interest with a down payment of $$3,953.$ Dealer fee and sales taxes will be $$2,633\mathrm{.}68.$

Option $3.$ Lease the vehicle for $48$ months with a $$439$ monthly payment and $$3,999$ due at signing $($with a $10,000$ annual mileage limii$).$

What is the total cost of Option $1?$

What is the monthly payment for Option $2?$

What is the total cost of Option $2?$