How much do you gain or lose by buying the car

Reference no: EM133251850

Question - Suppose that you have the option to lease a new car, which you can otherwise purchase for $21,000. The lease terms are $3000 down payment and payments of $321 per month for 48 months, at the beginning of each month. Upon termination, you can purchase the car for an additional payment of $7000 at lease expiration. If your financing rate is 10% APR, and you intend to finance the purchase of the car, how much do you gain or lose by buying the car instead of using the lease purchase option.

Reference no: EM133251850

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