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CalculatIng Annulty Values After deciding to acquire a new car, you can either lease the car or purchase it with a three - year loan.
CalculatIng Annulty Values After deciding to acquire a new car, you can either lease the car or purchase it with a threeyear loan. The car you wish to buy costs $ The dealer has a special leasing arrangement where you pay $ today and $ per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at an APR of percent compounded monthly. You believe that you will be able to sell the car for $ in three years. Should you buy or lease the car? What breakeven resale price in three years would make you indifferent between buying and leasing?
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