Compare the Cost of the Following Leasing Agreement with the Finance

question 138

Multiple Choice

Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period: The value of the car is $15,000 at the beginning of the lease period,and its projected residual value at the end of three years is $4,000.The lease requires a $500 down payment.
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Monthly payment
$315
Acquisition fee
$300
Disposition charge
$150
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Other things being equal,one would want to finance this car rather than take this lease if the finance cost were ____ or less.
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• A) ​$790
• B) ​$1,290
• C) ​$1,790
• D) ​$2,390