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Question 20 (8 points) You are thinking about leasing a car, and the dealer offers you the following deal: You can drive the car off
Question 20 (8 points) You are thinking about leasing a car, and the dealer offers you the following deal: You can drive the car off the lot today, with no upfront payment if you agree to make annual payments of $4,750.53 for five years. At the end of the lease, you can keep the car if you pay an additional $4,000 on the last day. Interest rates are 6%. What is the value of the car today, given these two cash flow streams (the annual lease and the $4,000)? A
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