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Applied 40S Buy or Lease Assighment Tara wants to drive a small economy car priced at $19800.00 before taxes. PST and GST are
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Answer #1
A)
Total cost of buying the car Amount ( $ )
Car Price 19800.00
GST @ 12% 2376
Total     22176.00
Interest cost for 5 years @ 8.5% p.a. 9424.8
Total cost of buying the car 31600.80
B)
Total Cost of Owning the car if She Lease First
Lease rent for 3 Years @ 6.5% of 22176 4324.32
Purchase Cost at the end of 3 years @ 43 % of 22176 9535.68
Total 13860
Interest cost for 2 years @ 8.5 % p.a. 1621.07
Total Cost of Owning the car if She Lease First 15481.07
C) Benefit of Leasing the Car
Total cost of buying the car 31600.80
Total Cost of Owning the car if She Lease First 15481.07
Benefit of leasing the Car 16119.73
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