Question

S
A car dealership provided Stephanie with the following two options:
Buy Option: Pay $51,500 immediately to own the vehicle. Lease
Option: Make a down payment of $27,500, and lease payments of
$930 at the beginning of every month for two years. At the end of two
years, she has the option to buy the vehicle for the residual value of
$19,000. The cost of borrowing is 3% compounded monthly. Which
option is cheaper?​

Answer 1

Answer:

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