You plan to buy yourself a brand new car to celebrate your graduation. The car costs $50,000. You can buy it from the dealer for $47,000, or at least. The terms of the lease call for a down payment of $5,000 and a payment of $850 per month for 60 months. The car (if leased) may be purchase at the end of 60 months for $3,000. Would you but the car or lease it if you can borrow or lend at an interest rate of 6% per year? Ignore all tax effects.