Problem #1: Tony and Savannah would like you to help them address some of their financial goals. They would like to know if Savannah should lease or buy (finance) her next car (2021 Toyota Rav 4). They try to change their car every 4 years. Assume 2% inflation. Additional Information: Finance Option: MSRP: $26,000 Interest Rate: 4 % Down payment required: 20% Residual Value: Please use $20, 741 for the estimated Blue Book Residual Value for 2021 Rav 4 model. Lease Option: Monthly Lease payment: $199 Due at leasing: $2,999 1. How much do they have to pay monthly if they choose to finance? 2. What is the PV of the financing option? (Please show your calculation on excel) 3. What is the PV of the lease option? (Please show your calculation on excel) 4. Which option would you recommend based on your calculation? Why? Problem #2: You are considering purchasing a 2021 LX 570 for $86,580. The Lexus dealer is offering 2 options on the purchase: Option 1. Receive a $6,500 rebate on the price of the car and finance the balance over 5 years at 4% interest. Option 2. Finance the vehicle for 60 months at 0% interest. 5. What is the monthly payment for Option 1? 6. What is the total cost of Option 1? 7. What is the monthly payment for Option 2? 8. Which option would you recommend based on total cost of the car? What other factors should you consider?