Accounting

You want to buy a car that has a cash price of $12,000. You have the following two alternatives for financing the purchase Alternative (1) The manufacturer's finance subsidiary's plan, that calls for an immediate payment of $2,000 followed by 20 monthly payments of $500 each, starting one months from today. Alternative (2) You can lease the car, which requires no money down, 20 monthly payments of $450 each, starting one month from today, and a balloon payment of $5,000 due the same day as the last of the monthly payments. Which alternative should you choose? Alternative (1) Alternative (2)