Question: You need a new computer. You are considering either leasing or putting the purchase on your credit card. The terms of the lease agreement are

You need a new computer. You are considering either leasing or putting the purchase on your credit card.

The terms of the lease agreement are $250 down and a monthly payment of $100 for 12 months, with an option to purchase for $300 at the end of the lease period.

If you buy the computer now and put the purchase on your credit card, your monthly payment would be $130.00, with the credit card interest rate of 18% compounded monthly.

What is the best option?(7marks)

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