Question

Use the TVM solver to answer this question. Suppose a new car with a purchase price of $25 150 can be bought or leased at an interest rate of 5.6%, compounded monthly for 48 months. The down payment on the purchase is 10% of the purchase price or $2515, while the down payment on the lease is $1040. The residual value for the lease is $14 750. There is a similar car on the lot that is two years old, selling for $17 500. The down payment required on the used car is $1750. Assume the residual value of the car at the end of the lease is $0.00. 

Determine the monthly payment for each of the three options if the terms of each loan are the same.

Determine the total amount of interest paid on each loan.

Determine the total amount paid for each of the three options, including principal, interest, and down payment.