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glass mr. Moy did here with the other financial math example this one says a new server rack is a new computer is being offered to your office you could purchase it for $7,500 or you can lease it over four years which is the service to the lifespan by paying $2,000 a year the true cost of the leased option involves finding the present value of these payments if the office presuming the office can reinvest the money and earn 80% matrac such as an example number there but in this case were going to use that number if so if you have a 3% return is it better to buy or lease so in a way the wording of the problem kind of clues you into it I think in our practice test I left out the word present value kind of on purpose but you dont really need to have that word to figure it out but it is much more helpful when youre given this hint and on the assessment I will give you that hints present value so essentially what were doing is to figure out even though paying 2,000 bucks a year for fou
