Lease vs. Buy Calculations
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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)
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Solution Summary
The solution explains how to evaluate a lease versus buy decision.
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