The cost of buying and leasing is: A. buy: 14720; lease: 14996.
<h3>Cost of buying and leasing</h3>
1. Cost of Buying:
Total loan payment= 385× 48 months
Total loan payment= $18,480
Cost of buying = Down Payment + Loan payment + ( Opportunity cost ×Down payment× X term in years ) - Ending loan estimated value
Cost of buying= 2,000 +$18,480 + (2000 × 0. 03× 4 years ) - 6,000
Cost of buying= 2,000 + $18,480+240-6,000
Cost of buying= 14,720
2. Leasing:
Total Lease payment=295× 48 months
Total lease payment= $14,160
Leasing= Total lease payment + End of lease charges + ( Security deposit × Opportunity cost× X term in years))
Leasing= $14,160+ 800 + (300 ×0.03×4)
Leasing= $14,160+ 800 +36
Leasing=14996
Therefore the cost of buying and leasing is: A. buy: 14720; lease: 14996.
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