Question 8. You are considering buying a car for $20,000. You expect that the car has a resell value of $5,000 after 5 years. As an alternative to buying the car, the dealer offers that you can also lease it instead for 5 years. If the interest rate is 4%, what is the maximum lease payment where you would still prefer leasing over buying the car?

1. When the yearly lease payment is $4492.54 or less.

2. When the yearly lease payment is $3569.41 or less.

3. When the yearly lease payment is $3369.41 or less.

4. When the yearly lease payment is $3126.07 or less.