Automobile lease vs. purchase A car dealer offers a purchase option and a lease option on all new cars. Suppose you are interested in a car that can be bought outright for $25,000 or leased for a start-up fee of $1200 plus monthly payments of $350.
a. Find the linear function y = f(m) that gives the total amount you have paid on the lease option after m months.
b. With the lease option, after a 48-month (4-year) term, the car has a residual value of $10,000, which is the amount that you could pay to purchase the car. Assuming no other costs, should you lease or buy?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.