Nissan is currently offering the following on a 3-year lease for a 2016 Nissan Altima with base price of $24,475: ---------------------------------- $189 Mo. lease for 36 mos $2,299 Initial pymt. Excludes taxes, title, and license. $2,299 initial payment required at consummation. (Includes $2,110 consumer down payment, $189 first month payment.) (INCLUDES $2,250 manufacturer's rebate applied to $189/Month lease. Offer valid only when financed through Nissan Motor Acceptance Corporation.) Subject to residency restrictions. 2016 Altima 2.5 S with Power Driver's Seat Pkg and Splash and Mats Lease model 13116 subject to availability to well-qualified lessees through Nissan Motor Acceptance Corporation. $24,475 MSRP incl. destination charge. Net capitalized cost of $19,251 includes a $595 non-refundable acquisition fee. Dealer contribution may affect actual price set by dealer. Monthly payments total $6,804 At lease end, purchase for $12,482, plus purchase option fee up to $300 (except KS & WI), plus tax, or pay excess wear & use plus $0.15 per mile for mileage over 12,000 miles per year. Lessee is responsible for maintenance and repairs. A disposition fee is due at termination of lease term. No security deposit required. Must take delivery from new dealer stock. See participating dealer for details. Offer ends 10/03/2016. ----------------------------------- This means you are renting a new 2016 Altima with a price of $24,475 for three years. The financier gives you $2,250 as a down payment. You pay $2,110 as a down payment + $189 to drive the car off the lot + $595 in bank fees to set up the lease. This is the net capitalized cost of $19,251 ($24,475 - $2,250 - $2,110 - $189 - $595 = $19,331....note there is an $80 discrepancy). Then the payments begin in one month, and last for 3 years (36 monthly payments total). After 3 years, the car can be purchased for $12,482. Suppose you decide to lease and buy the car in 3 years. [Just like buying a car, the price in the lease ($24,475 today or $12,482 in 3 years) is negotiable.] In order to save up for the $12,482 purchase price, how much would you need to save every month, starting next month and every month thereafter for 36 months? Assume an annual return of 6% compounded monthly.