Answer:
It is less expensive to lease, and the difference is $2,000.
Step-by-step explanation:
Buy the car:
pay: $22,000
sell after 3 years: $10,000
Amount spent in 3 years:
$22,000 - $10,000 = $12,000
If you buy the car, the 3 years of use of the car cost $12,000.
Lease the car:
down payment: $1000
monthly payment: $250
number of monthly payments: 3 × 12 = 36
amount paid in monthly payments: 36 × $250 = $9,000
Total amount paid: $1000 + $9,000 = $10,000
If you lease the car, the 3 years of use of the car cost $10,000.
Difference: $12,000 - $10,000 = $2,000
Answer: It is less expensive to lease, and the difference is $2,000.
