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You are interested to buy a car which costs you $35,000. You have two options to use the car. If you lease the car (option

You are interested to buy a car which costs you $35,000. You have two options to use the car. If you lease the car (option 1), you must pay $1 now and pay $450 per month for the next three years. If you buy the car using a loan (option 2), you will pay it off over next three years at 8% compounding monthly. If you buy the car, you can sell it for $23000 in three years. Should you buy or lease the car?

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