You need a new car. You can either lease or buy the car for 360000 SEK. In both cases you expect to use the car for 5 years. It will have a residual value of 120000 You can borrow at a rate of 1.5%. in case you buy the car you will take an annuity loan over 5 year at a borrowing rate of 1.5 %. What will be your monthly payments on the loan? In case you decide to lease the car from a car dealer, what monthly rate will the dealer charge assuming a perfect market? You remember the corporate finance classes at JIBS that you took long time ago and you recognize that a comparison of the rates from is not meaningful since in (a) you will own the car and you could sell it at its residual value