You are looking to lease a $2019$ Subaru Forester. You have found a $36-$month

closed end lease on a Forester with an MSRP of $$25,270$ and a lease end

purchase option of $$15,667($residual value$).$ To get the lease you have to pay a

fee of $$1,765$ due at signing, and the monthly payment was calculated to be

$$265.$

A$)$ What is the nominal rate of return the dealership is earning on the lease?

$($Hint: think of the cash flows from the dealerships prospective$)$

B$)$ What would the lease payment be if the dealership wanted a nominal $6\%$

compounded monthly on the lease?