You are graduating from University and need a car. After considering many vehicles, you have decided that you want a new Toyota Rav4. You can either lease or buy the car and want to decide which is the better choice. Here are the relevant facts: (Show all work to determine the cost of buying or leasing)

Buy	Closed End Lease
Purchase Price: $22,000	Initial Payments: Down payment $2,000 Security deposit $250
Down Payment: $2,250	Term of Lease: 3 years
Sales Tax: 8%	Monthly Lease payments: $400
Finance: 36 months @ 5%	Interest Rate on Savings: 1%
Residual Value: $10,000
Interest Rate on Savings: 1%