Answer the Question. -You Must Decide Whether to Buy a New Car for New

Multiple Choice

Answer the question.
-You must decide whether to buy a new car for $28,000 or lease the same car over a three-year period. Under the terms of the lease, you make a down payment of $2000 and have monthly
Payments of $350. At the end of three years, the leased car has a residual value (the amount you
Pay if you choose to buy the car at the end of the lease period) of $15,000. Assume you sell the new
Car at the end of three years at the same residual value. Compare the cost of leasing and buying the
Car.

A) Buy $13,000, lease $14,300
B) Buy $13,000, lease $14,600
C) Buy $14,000, lease $14,600
D) Buy $13,000, lease $14,900