Question

Question was provided via image upload.

Explanation:

Identify term length

Using the Leasing Cost Calculation knowledge point
The table lists "Term (months)" as 48 for both options.
48 months equals 4 years.

Explain N/A in Buy column

Buying a car means ownership.
No kilometre limits apply to owners.
Therefore, kilometres per term is N/A.

Calculate monthly payment difference

The "Estimated Monthly Payment" row shows:
Buy: \$494
Lease: \$364

$$ \text{Difference} = \$494 - \$364 = \$130 $$

Calculate total leasing cost

Using the Leasing Cost Calculation knowledge point
The monthly lease payment is \$364.
The lease term is 48 months.

$$ \text{Total Cost} = \$364 \times 48 = \$17,472 $$

Evaluate financing choice

Buying leads to full vehicle ownership.
Leasing offers lower monthly payments.
The choice depends on ownership preference.

Answer:

Question 5a

The term for both purchasing and leasing is 48 months (or 4 years).

Question 5b

When you buy a vehicle, you own it and can drive unlimited kilometres, so there is no set kilometre limit per term.

Question 5c

The difference in the monthly payments is \$130.

Question 5d

The total leasing cost for using the car for 4 years is \$17,472.

Question 5e

• Buy: Choose this if you want to own the car long-term and drive without mileage restrictions.
• Lease: Choose this if you prefer lower monthly payments and want to drive a newer car every few years.