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There is a choice to buy a car worth $28,000 with 100% financing at 4.99% APR for 60 month or lease at $450 per month.

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There is a choice to buy a car worth $28,000 with 100% financing at 4.99% APR for 60 month or lease at $450 per month. The car will need maintenance in the 3rd year worth $525 and $825 in the 4 th year. The car will have 35% residual value in the 5th year. Sales tax on new car is 6% and required rate of return is 5%. calculate the cost of Owning this car in year 0 . $1680 $7164 $6339 $6864

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