(EAIR on a lease) Capital Star Motors of Canberra, Australia, has the following lease offer for a...

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(EAIR on a lease) Capital Star Motors of Canberra, Australia, has the following lease offer for a Smart car:

• Lease term: 48 months

• No initial deposit, $8,995 balloon payment at end of lease

• Daily payment: $9.95 per day, payable monthly

• Smart car cash cost: $18,800

a. Assuming 30 days per month, compute the effective annual interest rate (EAIR) in the lease.

b. Compute the balloon payment that gives a 7% EAIR.

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Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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Question Posted: Jun 07, 2024 01:19 AM

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(EAIR on a lease) Capital Star Motors of Canberra, Australia, has the following lease offer for a...

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Principles Of Finance Wtih Excel

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