Lease vs Purchase Problem sering 2020 cm 2 O Samantha Goodship is trying to decide whether to lease or purchase a new car costing $20,000. If she leases, she'll have to pay a $600 security deposit and monthly payment of $550 over the 36-month term of a closed-end lease. Samantha could earn 1% on the amount of any down payment or security deposit. On the other hand, if she buys the car, she will have to make a $3,000 down payment and will finance the balance with a 36-month loan with an interest rate of 4% requiring monthly payments of $620; she'll also have to pay a 6% sales tax or ($1,200) on the purchase price, and she expects the car to have a residual value of $7,500 at the end of three years. Samantha can earn 4% interest on her savings. Use the automobile lease versus purchase analysis form to find the total cost of both the lease and the purchase and then recommend the best strategy for Samantha Goodship. Should she tease or Purchase Why? Which would you do and why? Use Worksheet 5.1 to complete (Belenet handouts)