Economics Homework Help

Economics Homework Help. Need help with questions

Jan is trying to decide between two cars that will be leased. The interest rate on leases for both cars is 6.25% NAR with monthly compounding for a four year lease. The trade-in from her present car is $5,000 for both car options, that would be deducted from the price.
Car A is more expensive at $40,000 and has an estimated value of $15,000 when returned to the dealer at the end of the lease.
Car B has a negotiated price of $30,000 and has an estimated value of only $5,000 when returned to the dealer at the end of the lease.
If the down payment is deducted from the price, which offer would have the lowest payments?

Economics Homework Help

 
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