(Net advantage to leasing) you want to lease a car that costs 25,000 new. You can lease it with zero down for 500 per month at the start of each month for the next 5 years, and then buy the car for 8,000 at the end of the lease. Your rich uncle thinks leases are a bad deal and offers to loan you the 25,000 at a 9% APR interest rate. You cannot deduct interest expense or car depreciation on your tax return. What do you tell your uncle?

Multiple choices are:

Ill take the loan; the NAL = -$4,376.93

Ill take the loan; the NAL = -$2,145.82

Ill take the loan; the NAL = -$1,200.34

Ill take the loan; the NAL = -$483.22

thanks, but no; the NAL = $83.49

thanks, but no; the NAL = $159.33

thanks, but no; the NAL = $1,200.34

thanks, but no; the NAL = $2,145.82

thanks, but no; the NAL = $4,376.93