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A local car dealer is advertising a standard 24-month lease of $950 per month for its new XT 3000 series sports car. The standard
A local car dealer is advertising a standard 24-month lease of $950 per month for its new XT 3000 series sports car. The standard lease requires a down payment of $3,000, plus a $1,000 refundable initial deposit now. The first lease payment is due at the beginning of month 1. In addition, the company offers a 24-month lease plan that has a single up-front payment of $22,300, plus a refundable initial deposit of $1,000. Under both options, the initial deposit will be refunded at the end of month 24. Assume an interest rate of 6% compounded monthly. With the present-worth criterion, which option is preferred? The present worth of the standard lease option is $ (Round to the nearest dollar.)
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