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You can buy a car for $20,000, or you can lease it for 36 monthly payments of $350 each, with the first payment due immediately.

You can buy a car for $20,000, or you can lease it for 36 monthly payments of $350 each, with the first payment due immediately. At the end of the 36 months the car will be worth $10,000. Which alternative should you prefer if the interest rate (APR) is 12%, and why?

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