Problem:
You want a new car.
Price of car $40,000, you can purchase for $37 K.
You can lease it for $5000 down, and payments of $650 per month for 60 months with the option to buy for $1000 at the end of the lease.
Would you do so at 7.2%? Ignore all tax affects. (So do you lease or buy, and the calculations)