Question

You can lease a computer for $375 down and a monthly fee of $75 or you can buy it for $3,000

a. Find after how many months it would be an advantage to buy.
b. Find how long you would lease before the cost is $2,775.

Answer 1

a. After 35 months it would be an advantage to buy rather than to lease.

b. After 32 months of the lease the cost would be $2275.

Explanation:

Given:

Down Amount for leasing computer = $375

Monthly fee = $75

Actual cost of Computer = $3000

a. we need to find the number of months it would be an advantage to buy.

b. Also we need to find number of months when the total cost would be $2,775.

Solution:

Let the number of months be 'm'.

Solving for part a.

Now we can say that;

Down Amount for leasing computer plus Monthly fee multiplied by number of months is equal to actual cost of the computer.

framing in equation form we get;

`375+75m=3000`

Now Subtracting both side by 375 using Subtraction property of equality we get;

`375+75m-375= 3000-375\\\\75m= 2625`

Now dividing both side by 75 using Subtraction property of equality we get;

`(75m)/(75)=(2625)/(75)\\\\m= 35`

Hence after 35 months it would be an advantage to buy rather than to lease.

Solving for part b.

Given:

Cost = $2275

We need to find the number months when the cost would be 2275.

So we can say that;

`375+75m=2275`

Now Subtracting both side by 375 using Subtraction property of equality we get;

`375+75m-375= 2775-375\\\\75m= 2400`

Now dividing both side by 75 using Subtraction property of equality we get;

`(75m)/(75)=(2400)/(75)\\\\m= 32`

Hence After 32 months of the lease the cost would be $2275.