Car We will be looking at a Ford Fusion that has a selling price of $43,000. Buying the Car You are going to buy the car with monthly payments at 3.5% interest for 5.5 years. Your monthly payment will be: $717 How much money will you pay over the life of the loan? $ 36-month Lease You are given the option to lease the same car for 36 months. Your payment will be $605 per month. You can then buy the car at the end of the lease for $26,230. Since you can afford $717 per month, how much money would you be putting into an annuity each month? $ If the annuity offers 1.0% annual interest, how much money will be in your account at the end of 36 months? $(Round to the nearest dollar.) At the end of the lease, you owe $26,230. If you use the money from your annuity as a down payment, how much is left that you need to borrow? $ If you are going to finance the remaining balance at 3.5% interest for 2 years, what will your payment be? $(Round to the nearest dollar.) Money spent out of pocket for past 5 years: Total of lease payments: Total of Deposits into the Annuity: Total of Payments in the Last 2 Years: Total Money Out of Pocket: 24-MONTH LEASE You are given the option to lease the same car for 24 months. Your payment will be $575 per month. You can then buy the car at the end of the lease for $33,397. Since you can afford $717 per month, how much money would you be putting into an annuity each month? $ If the annuity offers 1.0% annual interest, how much money will be in your account at the end of 24 months? $(Round to the nearest dollar.) At the end of the lease, you owe $33,397. If you use the money from your annuity as a down payment, how much is left that you need to borrow? $ If you are going to finance the remaining balance at 3.5% interest for 3 years, what will your payment be? $(Round to the nearest dollar.) Money spent out of pocket for past 5 years: Total of lease payments: Total of Deposits into the Annuity: Total of Payments in the Last 3 Years: Total Money Out of Pocket: Conclusion Buying the Car -- Total Money Out of Pocket: 36-Month Lease -- Total Money Out of Pocket: 24-Month Lease -- Total Money Out of Pocket: Which option is the best? 36-Month Lease, 24-Month Lease, or Buying the Car