Suppose you want to become a Lyft driver and need to lease a car.  You want a car valued at $22,000.  The dealer will let you drive away with no money down.  You sign a 5 year lease with monthly payments.  The imbedded discount rate on the lease is 6%.  At the end of the fifth year, you would need to pay a residual value payment of $5,255.19 in order to take ownership of the car.  What is the required monthly payment?  Round to the nearest $ and use the $ symbol.

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.