#6. there is a choice to buy a car worth $32,000 with 100% financing at 3.99% APR for 60 months or lease at $500 per month. The car will need maintenance in the 3rd year worth $525 and $825 in the 4th year. the car will have 30% residual value in the 5th year. sales tax on new car is 6% and required rate of return is 5%.

calculate the cost of owning this car in year 4

a-$6335

b-$7164

c-$7895

d-$6850