Would you prefer leasing or purchasing this vehicle

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Reference no: EM131573867

You receive a $20,000 car LEASE at 6% nominal annual for 60 months. Interest is compounded weekly and you make monthly payments. Your Residual value at the end of your lease is $12,000. Assume payments are made at the beginning of the month. Answer the following questions:

What is your monthly payment____________

If you can invest your money at 9%, would you prefer leasing or purchasing this vehicle?

Reference no: EM131573867

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