Nathan Leased a Vehicle with Monthly Payments of $350 Paid

Multiple Choice

Nathan leased a vehicle with monthly payments of $350 paid at the start of each month for 4 years. The lease agreement also stated that the vehicle had a $4,000 residual value. If the lease interest is at 7.5% compounded quarterly, determine the fair value of the leased vehicle.

A) $16,149.91
B) $16,949.91
C) $17,549.91
D) $18,208.91
E) $18,888.91