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You are thinking about leasing a car, and the dealer offers you the following deal: You can drive the $23,000 car off the lot today,
You are thinking about leasing a car, and the dealer offers you the following deal: You can drive the $23,000 car off the lot today, with no upfront payment if you agree to make monthly payments of $375.22 for five years. At the end of the lease, you can keep the car if you pay out a residual value price of $4,000. What is the annual rate of interest embedded in this lease arrangement?
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