Question

You are deciding whether to buy a car for 19,000 or to accept a lease agreement. The lease entails a $800 fee plus monthly payments of $260 for 36 months. Under the lease agreement, you are responsible for service on the car and insurance. At the end of the lease, you may purchase the car for $9000. Does the total cost of pursuing the car at the end of the lease agree to exceed the cost of purchasing the car at the outset? A. Yes, total cost of the car at the end of lose is $…. B. No, the total cost of the car at the end of the lease is $….

Answer 1

Answer:A.yes, the total cost of the of the car at the end of the lease is $19160

Explanation:

first it would be easiest to figure out the monthly payments

260 x 36=9360

then add the lease fee

9360+800=10160

lastly add the cost of the purchase of the car

9000+10160=19160

lastly compare the prices

19160>19000