q.10 You end up leasing $16966.03 for 3 years. Your down payment was $1052. The interest rate is 1.65% compounded monthly. The lease payment is monthly and due at the beginning of the month.

After 3 years, there is residual owing on a leased vehicle. You have the option of returning the vehicle after a lease term or buying it out. Assume you choose to purchase the vehicle after the lease and have saved for this opportunity. You pay the $10408 residual plus tax at 11%.

Assume you drove 73923 km in the 3 years. What was the cost per km per year for the leased vehicle?