Two different leasing options are listed for a truck (worth $27,995 new). How much more must be paid in monthly fees over the full 4 years to take option 2 (instead of option 1)? What is that extra money getting you?

Option 1: Take out a 4-year lease. That is, drive the same car for 4 years paying a monthly fee of $247.28, then turn the car in.

Option 2: Take out two consecutive 2-year leases. That is, after 2 years, turn in the car and lease a new Wrangler for another 2 years. The lease payments would be $257.69 per month.

If you dont lease at all but take out a 4-year loan at 4.2% interest compounded monthly to buy the car, should the monthly payments be more or less than option A? Why? What will your monthly loan payment be?