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Purchase Costs Leasing Costs Down payment: $5,400 Security deposit: $1,800 Loan payment: $320 for 48 months Lease payment: $320 for 48 months Estimated value at

Purchase Costs Leasing Costs Down payment: $5,400 Security deposit: $1,800 Loan payment: $320 for 48 months Lease payment: $320 for 48 months Estimated value at end of loan: $5,300 End-of-lease charges: $795 Opportunity cost interest rate: 2 percent per year Calculate the costs of buying versus leasing a motor vehicle

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