Final answer:
The total cost to lease the SUV is $23,046.24 and the total cost to buy the vehicle at the end of the lease is $15,446.00. None of the provided answer options match these calculations.
Step-by-step explanation:
To calculate the total cost to lease and to buy the vehicle, we need to add all the costs associated with the lease and purchase options.
The monthly lease payment is $421.38 and Teneshia will be making this payment for 48 months. So first, we'll calculate the total lease payment:
Total Lease Payments = monthly payment × number of months
Total Lease Payments = $421.38 × 48 = $20,226.24
Next, we add the upfront costs paid at the beginning of the lease:
Initial Costs = deposit + title fee + license fee
Initial Costs = $2,500.00 + $85.00 + $235.00 = $2,820.00
The total cost to lease the SUV is the sum of the lease payments and the initial costs:
Total Cost to Lease = Total Lease Payments + Initial Costs
Total Cost to Lease = $20,226.24 + $2,820.00 = $23,046.24
To find the total cost to buy the SUV at the end of the lease, we simply consider the residual value since the costs associated with the lease have already been accounted for in the total lease cost:
Total Cost to Buy = residual value = $15,446.00
Therefore, the correct answer is not represented in any of the options A to D provided by the student.