Julie is the owner of a fitness centre. As a small business owner she needs to make wise financial decisions. She must replace some of the gym equipment. The cost of the new equipment is $$18400.$ She can either purchase the equipment using her line of credit or lease it from the manufacturer.

The line of credit has an interest rate of $11\mathrm{.}4\%$ compounded monthly. She would make regular monthly payments.

The lease would be for $2$ years for $$1000$ down payment and then $$480$ each month.

What is the total cost of purchasing if she pays off the line of credit if she pays it off in two years? $(5$ pts$)$

If the equipment she buys depreciates $30\%$ each year, and she sells it for this price after $2$ years, what was the effective cost for the equipment? $(3$ pts$)$

What is the total cost of the $2-$year lease? $(2$ pts$)$

Which option, leasing the equipment for $2$ years or buying it and selling it in $2$ years is the most cost effective? $(2$ pts$)1$