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Determining the estimated value

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Instead of buying, the dealer offers to lease you a car worth $29500 for $698/mo. for 36 months with $6250 down, lease payments due at the beginning of the month. Assume that if you buy the car, the estimated value in 3 years will be $885. Should you lease or buy, and how much of an advantage does it provide you? (Assume that an APR of 5.5% is correct.)

Reference no: EM133120099

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