im has chosen the car he wants and must now decide whether to buy or lease it. The car has an MSRP of $21,977 and a residual factor of 34%. Jim negotiates a $500 discount and must pay the ollowing additional costs: $660 freight charge $100 tire/air tax $75 gas tax $85 administration fee $74 licence plate fee $20 gas fee Regardless of whether Jim buys or leases the car, the financing is 6.9% compounded monthly fo 8 months. If Jim buys the car, the finance fee is $54. If he leases the car, the finance fee is $36. Term of Lease MSRP Gross Capital Cost Trade-in Allowance Down Payment Total Capital Reduction Net Capital Cost Residual Factor Residual Value Depreciation Base Monthly Payment Monthly HST (13%) Lease Quote Monthly Payment Interest Rate 1st Payment HST on Down Payment (13%) 1st Year Fees Other Fees HST on Upfront (13%) Security Deposit Total Initial Payment