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