A used car that currently costs $$39,000$ will have a market value of $$8,000$ in four years. As a student, you cannot afford to pay

$$39,000,$ but you want to have a car while you are going to university for the next four years. Your father agrees to lend you $$39,000$

on the condition that you pay him $$400$ at the end of every month for the next four years and $$39,000$ at the end of the four years. The

car dealer provides financing facilities, and you are qualified to get a lease for which you will have to make monthly, end$-$of$-$month

payments of $$900$ for $48$ months. Assume your cost of capital is $9$ percent. $($For calculation purposes, use $5$ decimal places and final

answers to $0$ decimal places, e$.$g$.5,275.)$

Calculate the PV of lease.

PV of lease

$

Calculate the PV of loan from father.

PV of loan from father

$

Which option will leave you better off.

You should take