Using the following information, what is the cost to lease a car? * Security deposit $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $\$300$
* Monthly lease payment $\quad$$\quad$$\quad$$\quad \$ 300$ per month for a five-year lease
* Opportunity cost of down payment $\$ 300 \times$ loan period (in years) $\times 2 \%$ interest
* End-of-lease charges$\quad$$\quad$$\quad$$\quad$ $\quad \$ 500$

Question

Quizplus · Accepted Answer

The total cost of leasing a car can be calculated as follows:

Lease payments = $300/month x 12 months/year x 5 years = $18,000

Opportunity cost of down payment = $300 x 5 x 2% = $30

End-of-lease charges = $500

Total cost of leasing = Lease payments + opportunity cost of down payment + end-of-lease charges + security deposit

Total cost of leasing = $18,000 + $30 + $500 + $300 = $18,830

Therefore, the best choice is option B, $18,530, as it is the closest to the total cost of leasing, without being higher than it.

Using the Following Information, What Is the Cost to Lease \quad

Using the Following Information, What Is the Cost to Lease $\quad$