1. The vehicle that you want to lease costs $87,000 new and you are required to pay all taxes and an additional $12,000 (down payment) at the beginning of the lease. The lease payments are $720 per month at the end of the month for four years and you know the lease company charges interest at 5.5% compounded monthly. (a) What is the residual value of the car after four years? ANSWER: (b) How much interest do you pay over the life of the lease? ANSWER: (c) How much principal do you pay in the 4h year of the lease