What is the total cost of leasing a vehicle for three years that requires a security deposit of $300 (would earn 3% interest in a money market account otherwise), has monthly lease payments of $385, and has a mileage restriction of 10,000 with excess mileage resulting in a 10 cents per mile charge. Assume that over the life of the lease you exceed this limitation by 8,000 miles.

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The total cost includes the monthly payments for 36 months ($385 * 36 = $13,860), the excess mileage charge (8,000 miles * $0.10 = $800), and the opportunity cost of the security deposit ($300 * 0.03 * 3 = $27). Adding these gives $13,860 + $800 + $27 = $14,687.

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