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What is the implicit rate in the lease

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Question - Jill is leasing a $35,500 car for $659/month for three years. In three years, she expects to buy it outright for $18,000 at the same time she makes her last lease payment. If it costs her 5.55% to borrow, what is the implicit rate in the lease, which has a $1,000 down payment? Should she lease or borrow the money to get the car? Please show work and formulas.

Reference no: EM133105819

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