Based on the following, calculate the costs of buying and of leasing a motor vehicle.
Purchase Costs Leasing Costs
Down payment....................$1,500...............Security deposit......................$500
Loan payment......$450 for 48 months...............Lease payment......$450 for 36 months
Estimated value at end of loan..$4,000...............End of lease charges.................$600
Opportunity cost interest rate: 4 percent