You are considering leasing a car. You notice an ad that indicates that you may...
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You are considering leasing a car. You notice an ad that indicates that you may lease the car you want for $677.00 per month. The lease term is 24 months with the first payment due at inception of the lease. You must also make an additional down payment of $1490.00. The ad also says that the residual value of the vehicle is $16,986. The total cost of the vehicle based on list price is $32,482, but after much research you have concluded that you could buy the car for a total 'drive-out' price of $29,800. What is the quoted annual interest rate you are actually paying with the lease? 7.42% 10.67% 4.73% 4.60% 10.98%
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