Lease Vs Buy

Your landscaping company can lease a truck for $$7,250\mathrm{.}00$ a year for $8$ years. It can instead buy the truck for $$35,976\mathrm{.}91.$ The truck will be valueless after $8$ years.

a$.$ What is the present value of the lease payments, If the interest rate your company can earn on its funds is $6\mathrm{.}50\%.($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Present value

$

b$.$ Is it cheaper to buy or lease?

buy

lease