Calculate the total present value of lease payments

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Question - General Motors advertised three alternatives for a 25-month lease on a new Tahoe: (1) zero dollars down and a lease payment of $1,750 per month for 25 months, (2) $5,000 down and $1,500 per month for 25 months, or (3) $38,500 down and no payments for 25 months. Calculate the total present value of lease payments under the three alternatives (assume the annual interest rate is 12% compounded monthly).

Reference no: EM133041078

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