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Student ID: 9 . A car costs $ 1 3 , 4 0 0 . Alternatively, the car can be leased for 3 years by

Student ID:
9. A car costs $13,400. Alternatively, the car can be leased for 3 years by making payments of $291 at the beginning of each month and then bought at the end of the lease for $4,865. If interest is 12% compounded quarterly,
a) How much would it cost to buy the car immediately?
b) How much would it cost to lease first and then buy it?
c) Which alternative is preferable?
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