Lease option: A car is valued at $38 679 and can be leased for $640.34 per month including PST and GST for 36 months with a down payment of $4500. At the end of the three-year period, the residual buy-out amount is 55% of the original price plus taxes. Assume the car will be bought at this time by financing the buy-out at 6% for two years.
Purchase option: The car can also be bought for $38 679 plus PST and GST, financing at 6% for five years with a $4500 down payment.
**Note that in both situations you want to own the vehicle at the end of five years.
CALCUALTE and show all work. Include a screenshot of any spreadsheets or calculators used:
Total cost of Lease
