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Justine decides to enter into a 6-year car lease agreement. The purchase price of the car is $24,995, and the expected residual value after 5
Justine decides to enter into a 6-year car lease agreement. The purchase price of the car is $24,995, and the expected residual value after 5 years is $9,500. If there is no risk of default and the risk-free rate is 7% APR with monthly compounding, what is the monthly lease payment for a 6-year lease in a perfect capital market?
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