Question

jamir has decided that he needs a new car. he has found the model and color he wants for a purchase price of $25,888. to buy the car, he must put 10 percent down, and his loan is for five years with an interest rate of 4.4 percent. his payments are $432.46. to lease the car, he can sign a three-year contract with payments of $290. he needs to provide $1,500 up front to pay initial fees and his first months payment. his annual mileage cannot exceed 15,000 miles. jamirs new job is 25 miles away from his home. what is the most important thing he needs to consider before agrees to a lease? will he enjoy riding in his new car? will he be able to come up with the $2,500 down payment? will he drive more than 15,000 miles per year? will he be able to afford his $432 payment?

Explanation:

Step1: Analyze the key factor for Jamir

The most important thing Jamir needs to consider before agreeing to a lease is related to his job's distance (25 miles away) and how it affects his annual mileage. Since the lease has an annual mileage limit of 15,000 miles, we need to calculate his approximate annual driving for work.
First, calculate the round - trip distance per day: $25\times2 = 50$ miles.
Assume he works 5 days a week and 50 weeks a year (approximate). Then the annual work - related driving is $50\times5\times50=12,500$ miles. But we also need to consider other driving. However, the key factor related to the lease (which has a mileage limit) is whether his total annual driving will exceed 15,000 miles. The other factors like enjoyment of riding, down - payment ability (for buying) are secondary compared to the mileage limit for the lease, as exceeding the mileage limit can lead to extra charges.

Step2: Evaluate other options

• "Will he be able to come up with the $2,500 down payment?" is related to buying, not the most important for lease.
• "Will he enjoy riding in his new car?" is a personal preference, not a critical financial/contractual factor for lease.
• "Will he be able to afford his $432 payment?" is for buying, not the main lease - related factor.

Answer:

Will he drive more than 15, 000 miles per year?