Let's evaluate the total costs for each option to determine the best financial decision.
- Option A (Buy new): The total monthly cost is [tex]$338 + $[/tex]275 = [tex]$613. Since this payment will be made for 60 months, the total payment over this period is $[/tex]613 * 60 = [tex]$36,780. Adding the up-front cost of $[/tex]2,500, the overall cost of this option is [tex]$36,780 + $[/tex]2,500 = [tex]$39,280.
- Option B (Lease new): Similarly, the total monthly cost is $[/tex]229 + [tex]$275 = $[/tex]504. Over the 60-month period, this totals to [tex]$504 60 = $[/tex]30,240. Adding the up-front cost of [tex]$3,925, the overall cost of this option is $[/tex]30,240 + [tex]$3,925 = $[/tex]34,165.
- Option C (Buy used): Here, the total monthly cost is [tex]$250 + $[/tex]225 = [tex]$475. Since this payment is made for 36 months, the total payment amounts to $[/tex]475 36 = [tex]$17,100. Adding the up-front cost of $[/tex]2,000, the overall cost of this option is [tex]$17,100 + $[/tex]2,000 = [tex]$19,100.
Based strictly on the total cost, Option C (Buy used) is the best financial decision at $[/tex]19,100, as it is the lowest in terms of total expenses compared to Option A and Option B.
