2a. Two different leasing options are listed below for a Jeep Wrangler (worth $27,995 new). How much more must be paid in monthly fees over the full 4 years to take option B (rather than option A)? What is that extra money getting you?

Option A: Take out a 4-year lease. That is, drive the same car for 4 years paying a monthly fee of $247.28, then turn the car in. Option B: Take out two consecutive 2-year leases. That is, after 2 years, turn in the car and lease a new Wrangler for another 2 years. The lease payments would be $257.69 per month.

2b. If you dont lease at all but take out a 4-year loan at 4.2% interest compounded monthly to buy the car, should the monthly payments be more or less than option A? Why? Go ahead and do the computation, what will your monthly loan payment be?