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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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