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You can lease a car for 5 years by paying $5,000 today and then making...

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Finance

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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? O Leasing is cheaper in PV terms by $7,572 Buying is cheaper in PV terms by $2,572 o Leasing is cheaper in PV terms by $7,209 O Buying is cheaper in PV terms by $7,209 Buying is cheaper in PV terms by $7,572 Leasing is cheaper in PV terms by $2,572

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