Assume that you need a new car for exactly 4 years. You can either 1) lease the car for 4 years, or 2) purchase the car with a four-year loan and sell it after 4 years.

The dealer has a leasing arrangement where you pay $4,400 today and $580 per month for the next four years.

If you purchase the car, you will pay it off in monthly payments over the four years at a stated interest rate of 12 percent, paid monthly. In other words, your interest rate will be 1% per month. The car you wish to buy costs $35,000. You believe that you will be able to sell the car for $15,000 in four years. Should you buy or lease the car? Please explain in the space provided.