1) You want a new car.
Price of car $40,000, you can purchase for $37 K.
You can lease it for $5000 down, and payments of $650 per month for 60 months with the option to buy for $1000 at the end of the lease.
Would you do so at 7.2%? Ignore all tax affects. (So do you lease or buy, and the calculations)© BrainMass Inc. brainmass.com March 4, 2021, 7:54 pm ad1c9bdddf
The solution explains how to evaluate a lease versus buy decision.