Suppose that you have the option to lease a new car, which you can otherwise purchase for
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Question:
- Suppose that you have the option to lease a new car, which you can otherwise purchase for $21,000.
- The lease terms:
- $3000 down and payments of $328 per month for 48 months, at the beginning of each month.
- Upon termination , you can purchase the car for an additional payment of $7000 at lease expiration your financing rate is 9.8% APR and you intend to finance the purchase of the car, how much do you gain (+) or lose () by buying the car instead of using the lease-purchase option?
Related Book For
Personal Financial Planning
ISBN: 978-1305636613
14th edition
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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