You are considering either the purchase to lease a car that has a 20,000 sticker price. with the following information which is better: lease, finance purchase, or cash purchase. (for all options, assume that you had kept your money, your could have invested it at 3.5%.)
lease terms:
- 2,215 due at signing of lease
- 36-month lease
- 307.50 per month
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finance through credit union and ownership:
- 2,000 down payment required
- 2,400 factory rebate
- sale tax of 1,200, at a 6% rate
- 4% financing
- 9,000 trade-in/resale value at end of 36 months
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cash purchase:
- 20,000 sticker price
- 2,400 factory rebate
- sale tax of 1,200, at 6% rate
- 9,000 trade-in/resale value at end of 36 months
n= i/y= pv= pmt= fv= p/y=