Thinking about leasing a car

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Reference no: EM131048112

You are thinking about leasing a car. the purchase price of the car is $25,000. The residual value (the amount you could pay to keep the car at the end of the lease) is $15,000 at the end of 36 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 6.25% APR, compounded monthly. What will be your lease payments for a 36 month lease? (Note: be careful not to round any intermediate steps less than 6 decimal places.) Round your answer to the nearest cent.

Reference no: EM131048112

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