You must decide whether to buy a new car for $18,000 or lease the same car over
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Question:
You must decide whether to buy a new car for $18,000 or lease the same car over a three-year period. Under the terms of the lease, you can make a down payment of $2000 and have monthly payments of $200. At the end of the three years, the leased car has a residual value (the amount you pay if you choose to buy the car at the end of the lease period) of $13,000.
Assume you can sell the new car at the end of the three years at the same residual value. Is it less expensive to buy or to lease?
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
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