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You Are Contemplating Leasing a New Car

Question 50

Multiple Choice

You are contemplating leasing a new car.The monthly lease payments (to be made at the end of each months) are $299 for 36 months.At the end of the lease you have the option of purchasing the car for $17,800.If you could buy the car today for $22,500,what is the implicit interest on the lease?


A) 9.942%
B) .8285%
C) 12.345%
D) 7.852%

Correct Answer:

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