You just leased a Honda Civic that sells for $28,950. The terms of your leaše řēquire you to make 36 payments of $416 per month with the first payment due the day the car was leased. At the end of 3 years you would have to pay $16,956 to buy the car. What effective rate are you paying on the car lease?
You just leased a Honda Civic that sells for $28,950. The terms of your leaše řēquire you to make 36 payments of $416 per month with the first payment due the day the car was leased. At the end of 3 years you would have to pay $16,956 to buy the car. What effective rate are you paying on the car lease?
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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Transcribed Image Text:You just leased a Honda Civic that sells for $28,950. The terms of your leaše řēquire
you to make 36 payments of $416 per month with the first payment due the day the
car was leased. At the end of 3 years you would have to pay $16,956 to buy the car.
What effective rate are you paying on the car lease?
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