James and Corrine are considering what to do about purchasing a new car. They plan to acquire a new 2016 Toyota Highlander. The dealer quotes a price of $40,000 with the options they want. They have choices: Lease, Buy with a zero interest loan from the dealer, and Buy with a $2,000 rebate and borrow the money from the credit union. Convert the 6% annual discount rate to a monthly rate and find the present Value of the lease option. The $3,300 up-front fee includes the $3,300 for tax and tags.