Have a Finance Question? Ask a Financial Expert Online.
Let's figure out the PV of the lease...
PV = FV/(1+r)^t, where PV is the present value, FV is the future value, r is the rate, and t is the time
PV = 8000/(1+0.07)^1 + 8000/(1+0.07)^2 + 8000/(1+0.07)^3 + 8000/(1+0.07)^4 + 8000/(1+0.07)^5 + 8000/(1+0.07)^6
PV = 38132.32
That is lower than the cost of buying the truck outright, so it would be cheaper to lease the truck. Put another way -- the interest you can earn on your money during the lease would more than make up the difference in payments.
Let me know if you have any questions. If not, thanks for pressing "Accept".