You have just started your first job and you want to have the basic appliances in your apartment. You face the following choices:

(i) Purchase all appliances at the store using a bank loan. There is no down payment as the bank can take your appliances if you default on the loan. The loan is at the annual market rate of 7%, and the loan amount is $4,000 to be repaid monthly over 4 years.

(ii) Rent-to-buy from the same store. The monthly rental is $85 for 48 months and then you pay $800 to own all the appliances.

What is the net cost today of the cheapest option?

I got 4155 as net cost of the cheapest option, but that is incorrect. The answer is "[3960.00, 4040.00]" but I cannot seem to get an answer within that range.

I have used "85* (1-(1+0.005833333)^48/0.005833333 + 800*1/(1+0.005833333)^48". Not sure where I went wrong.