Find the monthly payments on a 3-year lease for a $25,510 car if the car depreciates at an annual rate of 16% and the lease has an annual interest rate of 4%.

Hint:

-Monthly payments in a lease are computed as interest on residual + payment on loss of value

- To find interest on residual use I = PRT (FV is the residual, PV is the value when new, i is the annual rate of depreciation, and n is the lease term in years.)