Leasing

Leasing the Storefront Location
Down payment	{A}	$8,400.00
Interest (compounded annually)	{B}	2.38%
Term in months	{F}	28
Monthly payments (without HST)	{G}	$8,841.00
		(beginning-of-month payments)
Residual (FV) payment to own	{H}	$86,000.00
Financing the Storefront Location
Down payment	{A}	$8,400.00
Interest (compounded annually)	{B}	2.38%
List Price	{C}	$314,121.00
Additional purchase costs	{E}	$34,902.00
Term in months	{F}	28

PART D

If Jedda's client is worried about how the residual payment might fluctuate, what should it be in order to make both options equal? Remember to compare the LEASE list price to the total price of the FINANCING option (which includes the list price and additional purchase costs, but not the down payment).