You can lease a car for 5 years by paying $5,000 today and then making lease payments of $350 per month
You can lease a car for 5 years by paying $5,000 today and then making lease payments of $350 per month (starting next month) for 5 years.
Or you can buy the car now for $30,000 and then in 5 years sell the car for $18,000
Either way you have use of the car for 5 years. If your investments earn 5.00% APR (compounded monthly) which alternative is cheaper and by how much in present value terms?
