The two largest purchases you will likely make in your lifetime are a vehicle and a home To Buy or To Lease, That is the Question.

When you are ready to have your own vehicle (we will refer to it as a car for the sake of simplicity), you have two options:

• Purchase a car from a dealership or a private owner
• Lease a car from a dealership

When purchasing a car, there is choice in how frequently the payment is made, what time of month and how the bank chooses to compound the interest rate. Often buyers choose a monthly or biweekly payment and banks compound the interest frequently (monthly or daily).

Therefore, the monthly car payments often form a General Ordinary Annuity.

Consider this situation: You have saved $4,507 toward down payment for a new car. Youve chosen a 2016 Honda Accord Coupe for $27,744 plus tax.

Find the price of the car with tax @ 12% minus the down payment. Round your answer to two (2) decimal places