The following advertisement appeared in theWallStreet
Chapter , Problem 7-62(choose chapter or problem)
The following advertisement appeared in theWallStreet Journalon Thursday, February 9, 1995:Theres nothing quite like the SevilleSmartLease. Seville SLS $0 down,$599 amonth/36 months.Terms are first months lease payment of $599 plus$625 refundable security deposit and a consumerdown payment of $0 for a total of $1224 due atlease signing. Monthly payment is based on a netcapitalized cost of $39,264 for total monthly pay-ments of $21,564. Payment examples based on a1995 Seville SLS:$43,658 MSRP including desti-nation charge. Tax, license, title fees, and insuranceextra. Option to purchase at lease end for $27,854.Mileage charge of $0.15 per mile over 36,000 miles.(a)Set up the cash flows.(b)Determine the interest rate (nominal and effec-tive) for the lease
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