A community recreation centre needs new sound equipment every $18$ months. The manager is looking at these two options:

Buy equipment for $$11200$ on credit at $0\mathrm{.}7\%,$ compounded monthly, for $18$ months. The store selling the equipment guarantees that it will take the equipment back as a trade$-$in for new equipment in $18$ months. The trade$-$in value will be $$5000.$

Lease equipment for $$1000$ down and $$455\mathrm{.}56$ per month for $18$ months.