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1. Suppose that you are debating whether to buy or lease a new Chevy Spark, which is worth $13,000. Its residual value after 2 years

1. Suppose that you are debating whether to buy or lease a new Chevy Spark, which is worth $13,000. Its residual value after 2 years is $8,000, and after 4 years only $4,500. Assume an interest rate of 4.5% compounded monthly.

1a. If you take out a 4-year lease, what will be the monthly lease payment?

1b. If you take out a 2-year lease, what will be the monthly lease payment?

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