Question 1137367
<b>a. What is the cost for buying the car and selling it after three years?</b>
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Paid $22,000 for new car.
Sold car for $11,000.
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Total net cost was $11,000.
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<b>b. What is the cost for leasing the car?</b>
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Paid $2000 down to lease.
Paid $7200 in monthly payments over three years. (36 months x $200 payment.)
Paid $11,000 to purchase car after three years.
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Total expenses over three years was $20,200.
Sold car for $11,000.
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Total net cost was $9200.
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<b>c. Is it less expensive to buy or lease?</b>
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It is less expensive to lease.