Math Problem Statement
What is the effective interest rate on a lease for a $170,000 truck with $0 down, $4,000 monthly payment over 5 years, and $1 buy-out option at the end?
Solution
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Math Problem Analysis
Mathematical Concepts
Loan Amortization
Interest Rate Calculation
Finance
Formulas
P = (r * PV) / (1 - (1 + r)^-n)
Theorems
Loan Amortization Formula
Suitable Grade Level
College-level (Finance, Business Studies)
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