You are thinking about leasing a car. The purchase price of the car is $25,000. The residual

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You are thinking about leasing a car. The purchase price of the car is $25,000. The residual value (the amount you could pay to keep the car at the end of the lease) is

$15,000 at the end of 36 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 5.5% APR, compounded monthly. What will your lease payments be for a 36-month lease?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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