Purchase Costs Leasing Costs Down payment $ 1,500 Security deposit $ 500 Loan payment $ 450 for 36 months Lease payment $ 450 for 36 months Estimated value at end of loan $ 4,000 End of...

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Finance

Purchase Costs   Leasing Costs
  Down payment $ 1,500   Securitydeposit $ 500
  Loan payment $ 450 for 36 months   Lease payment $ 450 for 36 months
  Estimated value atend of loan $ 4,000   End of leasecharges $ 600
  Opportunity costinterest rate 4 percent
Based on the above, calculate the costs of buying and ofleasing a motor vehicle.

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Transcribed Image Text

Purchase Costs Leasing Costs Down payment$1,500 Securitydeposit$500 Loan payment$450for 36 months Lease payment$450for 36 months Estimated value atend of loan$4,000 End of leasecharges$600 Opportunity costinterest rate4percentBased on the above, calculate the costs of buying and ofleasing a motor vehicle.

Purchase Costs				Leasing Costs
Down payment	$	1,500		Securitydeposit	$	500
Loan payment	$	450	for 36 months	Lease payment	$	450	for 36 months
Estimated value atend of loan	$	4,000		End of leasecharges	$	600
Opportunity costinterest rate		4	percent