Consider a recent college graduate who needs a new car. The student needs help deciding between leasing or buying a new vehicle. The lease offer is as follows: $2,000 money down, $250 monthly payment, 10, 000 miles per year allowance, 3-year agreement. The student can finance the same vehicle at a rate of 6%, with a down payment of $2,500, for a term of 5 years. The price of the vehicle agreed upon, if purchased, is $24,500.

To help the student:

1. Calculate the student's monthly payment, if they choose to buy the vehicle

2. Calculate the total amount of money that will be paid over the lifetime of the loan (you may use an online calculator; be sure to exclude the down payment from the amount financed)

3. Calculate the total amount of money that will be paid over the life of the lease, if the student chooses to buy the vehicle

4. Include a recommendation, based on the information above.