Two options-purchasing or leasing

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Reference no: EM131948545

Joe is interested in driving a new SUV for three years. There are two options—purchasing or leasing. A local car dealer quoted him a leasing deal of $2000 down and $299 a month for 36 months. Alternative he can purchase the vehicle at $22,000 and sell the SUV in 36 months at 60% of the purchase price. Joe would like to get your help in deciding which option is best. Assume that the interest rate is 6% (APR compounded monthly).

Reference no: EM131948545

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