Which is the best deal, Eli needs a car. He has decided on

Which is the best deal

Reference no: EM131969632

Question: Eli needs a car. He has decided on a Nissan Sentra. He can buy it for $16,000 cash. Or he can take out a 6% interest 60 month loan with a 2% downpayment. Or he can get the Sentra on a 24 month lease with an $800 down payment and lease payments of $350 per month. Which is the best deal? Why? Eli has a 7% discount rate, and he will drive less miles per year than most people. The Sentra is expected to fall apart after ten years.

Reference no: EM131969632

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