exercise: Financing your vehicle: pay cash, take out a loan or to rent out.

You intend to own or lease a vehicle for 42 months consider the following 3 vehicle financing options: a BMW i25 Ci 2-D Coupe 20 5.

Option A: Buy the vehicle at the regular price of $32,508 and pay for it for 42 months, in equal monthly installments, at a nominal interest rate of 5.65%, compounded monthly.

Option B: Purchase the vehicle by cash payment, at the reduced price of $31,020.

Option C: Lease the vehicle for 42 months. The table in the Excel file below lists the items interest of each option.