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You just leased a Honda Civic that sells for $25,350. The terms of your lease you to make 60 payments of $310 per month with the first payment due the car was leased. At the end of 5 years you would have to pay $11,862 to buy t What effective rate are you paying on the car lease? 5.38% 5.60% 5.46%

You just leased a Honda Civic that sells for $25,350. The terms of your lease you to make 60 payments of $310 per month with the first payment due the car was leased. At the end of 5 years you would have to pay $11,862 to buy t What effective rate are you paying on the car lease? 5.38% 5.60% 5.46%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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4) Listen You just leased a Honda Civic that sells for $25,350. The terms of your lease require you to make 60 payments of $310 per month with the first payment due the day the car was leased. At the end of 5 years you would have to pay $11,862 to buy the car. What effective rate are you paying on the car lease? O5.38% O 5.60% 5.46% 5.51% 31.87%
Transcribed Image Text:4) Listen You just leased a Honda Civic that sells for $25,350. The terms of your lease require you to make 60 payments of $310 per month with the first payment due the day the car was leased. At the end of 5 years you would have to pay $11,862 to buy the car. What effective rate are you paying on the car lease? O5.38% O 5.60% 5.46% 5.51% 31.87%
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