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Use the following data: Purchase Costs Leasing Costs Down payment: $4,800 Security deposit: $1,600 Loan payment: $1,440 for 48 months Lease payment: $1,440 for 48

Use the following data:

Purchase Costs Leasing Costs
Down payment: $4,800 Security deposit: $1,600
Loan payment: $1,440 for 48 months Lease payment: $1,440 for 48 months
Estimated value at end of loan: $5,100 End-of-lease charges: $765
Opportunity cost interest rate: 2 percent

Calculate the costs of buying versus leasing a motor vehicle.

Cost of buying $
Cost of leasing $

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