Question: You are considering either leasing or purchasing a car. You notice an ad that says you can lease the car you want for $ 6

You are considering either leasing or purchasing a car. You notice an ad that says you can lease the car you want for $644.00 per month. The lease term is 48 months with the first payment due at inception of the lease. You must also make an additional down payment of $3,990. The ad also says that the residual value of the vehicle is $25,137. The list price of the vehicle is $43,491, but after much research, you have concluded that you could buy the car for a total "drive-out" price of $39,900. What is the quoted annual interest rate you are actually paying with the lease?

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