You are thinking about leasing a car. The purchase price of the car is $55,000. The residual value (the amount you could pay to keep the car at the end of the lease) is $20,000 at the end of 60 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 5% APR, compounded monthly. What will your lease payments be for a 60-month lease? Hint: There are essentially two ways to own the car: (1) you pay $55,000 today, or (2) you make 60 monthly lease payments and then at the end of the 60th month you pay $20,000 to obtain the ownership of the car. What would the monthly lease payments have to be in order for these two ways to have the same cost in terms of the dollar value today (i.e., same PV)?

Group of answer choices $660.49 $743.83 $889.36 $670.30