(Answered) Use the following datapurchase costdown payment 1500loan

Finance

Use the following data:

PURCHASE COST

Down payment: $1,500

Loan payment: $450 for 48 months

Estimated value at end of loan: $4,000

Opportunity cost interest rate: 4 percent par year

LEASING COST

Security deposit: $500

Lease payment: $450 for 48 months

End-of-lease charges: $600

Calculate the costs of buying versus leasing a motor vehicle.

Buying cost?

Leasing cost?

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