Jacqueline was offered two options for a car he was purchasing: Lease option: Pay lease amounts of $300 at the beginning of every month for 4 years. At the the end of 4 years, purchase the car for $13,000. Buy option: Purchase the car immediately for $20,500. The money is worth 6.50% compounded monthly.

a. What is the Discounted Cash Flow (DCF) for the lease option? $0.00 Round to the nearest cent

b. Which is the better option?

Lease Option

Buy Option