Sylvan wants to get a car. Compare to three options listed below to find out which will cost him the least amount of money over a four year period.

a) He can rent a car from Budget Rent-A-CarTM for $22 per day.

b) He can lease a car for $650 per month.

c) He can purchase the car. The negotiated price, including taxes and fees, is $37,950. He has $4500 to make a down payment. The interest rate is 2.85%, compounded daily. Sylvans job pays him twice a month (on the 15th and at the end of the month), so he is willing to make biweekly payments. The car depreciates at a rate of 16.5% each year. At the end of the four years, Sylvan have fully paid off his loan and then he will be selling the car.

d) List two advantages and two disadvantages to the option of purchasing the car.