Option A to buy new has a monthly payment of 338 dollars for 60 months, up-front cost of 2,500 dollars, and 275 dollars a month for insurance and gas. Option B to lease new has a monthly payment of 229 dollars for 36 months, up-front cost of 3,925 dollars, and 275 dollars a month for insurance and gas. Option C to buy used has a monthly payment of 250 dollars for 36 months, up-front cost of 2,000 dollars, and 225 dollars per month for insurance and gas. Based on your budget, which transportation option is the best financial decision for you? Explain your answer in at least two sentences.

Question

Business

Barrett

10 January, 00:16

Option A to buy new has a monthly payment of 338 dollars for 60 months, up-front cost of 2,500 dollars, and 275 dollars a month for insurance and gas. Option B to lease new has a monthly payment of 229 dollars for 36 months, up-front cost of 3,925 dollars, and 275 dollars a month for insurance and gas. Option C to buy used has a monthly payment of 250 dollars for 36 months, up-front cost of 2,000 dollars, and 225 dollars per month for insurance and gas. Based on your budget, which transportation option is the best financial decision for you? Explain your answer in at least two sentences.

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Answers (1)

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Willow Frazier · Answer 1

Answer: Option C is the best financial decision.

Explanation:

Given dа ta:

Option C

Monthly payment = $250 For 36 months

Upfront = $2,000 (down payment).

Insurance and gas = $225/month.

Option C, is a more economical Transportation option because it's total cost is lesser which is $11,225 compared to option A which is $23,055 and option B $12,444