The car you like costs $35,000. You are trying to decide whether you should lease or buy the vehicle. Lease If you lease the car from the dealer, you must pay $1,700 today, and $400 per month for the next 3 years. At the end of the 3-year lease (3 years from today), you will return the vehicle to the dealer. Buy If you buy the car, you will obtain a three-year, $35,000 loan @ 6% per year, compounded monthly. The loan will be repaid over the next 36 months (36 monthly payments, beginning one month from today). Three years from today, you will be able to sell the car for $22,000 (resale price).