Lease$-$versus$-$purchase decision Personal Finance Problem Joanna Browne is considering either leasing or purchasing a new Chrysler Sebring convertible that has a manufacturer's suggested retail

price $($MSRP$)$ of $$32,500.$ The dealership offers a $3-$year lease that requires a capital payment of $$3,400($ $$3,000$ down payment $+$$$400$ security deposit$)$ and monthly payments of $$507.$ Purchasing requires a

$$2,600$ down payment, sales tax of $6\mathrm{.}8\%($$$2,210),$ and $36$ monthly payments of $$892.$ Joanna estimates the value of the car will be $$17,000$ at the end of $3$ years. She can earn $5\mathrm{.}2\%$ annual interest on her

savings and is subject to a $6\mathrm{.}8\%$ sales tax on purchases. Make a reasonable recommendation to Joanna using a lease$-$versus$-$purchase analysis that, for simplicity, ignores the time value of money.

a$.$ Calculate the total cost of leasing.

b$.$ Calculate the total cost of purchasing.

c$.$ Which should Joanna do$?$