Problem:
Danny is considering buying a new computer. The computer is $2,090.00. Should Danny purchase it outright, or lease it?
A purchase would be done via credit card, financed at 15%, with payments of 100 dollars per month applied.
Here are the terms for his three lease options:
FML Lease
Months Payment/mo Total$
........................
24 $87 = 2088
30 $69 = 2070
36 $71 = 2556
48 $58 = 2784
1D1 Lease:
Months Payment/mo Total$
........................
36 $74 = 2664
30 $84 = 2520
48 $59 = 2832
24 $103 = 2472
9oD Lease:
Months Payment/mo Total$
........................
27 $86 = 2322
33 $74 = 2442
39 $70 = 2730
What is the better decision to make -- lease or buy, in today's dollars? If leased, which lease method should be taken?