Question

Benjamin is trying to determine whether to lease or buy a car. The following table shows the costsassociated with buying and leasing the car. How much does Benjamin save over the 5-year period if heleases the car instead of buying it?Momehly MonthlyFinance Down MonthlyTermCar MaintenanceOption Payment PaymentInsurance CostBuying$8000$313.0860 months$115$105Leasing$2000$19960 months$300$75 approximately $3545 approximately $5545 approximately $5475

Answer 1

Emma, this is the solution to the problem Benjamin has:

Step 1: Let's calculate the total cost of buying the car.

8,000 (Down payment)

313.08 (Monthly payment) * 60 months

115.00 (Monthly Insurance)

105.00 (Monthtly maintenance)

8,000 + 313.08 * 60 + 115 * 60 + 105 * 60

8,000 + 18,784.80 + 6,900 + 6,300

Total Cost = 39,984.80

Step 2: Let's calculate the total cost of leasing the car.