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Which lease is more preferable

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A car company is advertising a 24-month lease of a car for $520/month. The lease requires a $2,500 down payment and a $disposition fee paid at the lend of the lease. As an alternative, the company offers a 24 month lease with a single up-front payment of $12,780 plus a $500 refundable security deposit. The security deposit will be refunded(as $500) at the end of the 24-month lease. Assuming an interest rate of 6% compounded monthly, which lease is more preferable?

Reference no: EM132254461

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