n= 19

Subject: Engineering Economy Code: ECON 401 Semester 412 (Question 1) You are considering either buying or leasing a vehicle. The following data have been compiled: Buying Lease Price of vehicle $ 22,000 $ 22,000 Down payment required at year 0 S 2000+20n 50n Value of vehicle at the end of year 3 (unknown) 36 Monthly payments $ 608 +10n (end of $ 420+25n (beginning of each month) each month) Documentation fee $ 400+30n (payable at the beginning of lease) If your interest rate is 6+n% compounded monthly, at what value of the vehicle at the end of 3 years "S" would make the both options economically equivalent