Problem 6-11 (LO6.2)

Use the following data:

Purchase Costs	Leasing Costs
Down payment: $6,000	Security deposit: $2,000
Loan payment: $1,800 for 48 months	Lease payment: $1,800 for 48 months
Estimated value at end of loan: $5,500	End-of-lease charges: $825
Opportunity cost interest rate: 2 percent

Calculate the costs of buying versus leasing a motor vehicle.

Cost of buying	$
Cost of leasing	$