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Finance

A graphic designer needs a laptop for audio/video editing, and notices that they can elect to pay $2900 for a Dell XPS laptop, or lease from the manufacturer for monthly payments of $79 each for four years. The designer can borrow at an interest rate of 7% APR compounded monthly. What is the cost of leasing the laptop over buying it outright?

I'm trying to use a finance calculator.

N:48

i=7/12=.58

PMT= -$79

solve for FV= 4357.97

4357.97-2900=1457.97

However, the options listed as answers are:

A- Leasing costs 399 more than buying.

B- Leasing costs 311 more than buying

C- leasing costs 384 more than buying.

D- leasing costs 892 more than buying

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93054114

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