This week, Rev. Smith negotiated a new 10-year lease on life. Under the terms of the agreement, Smith will pay monthly fees of $417, a number derived by taking the Capitalized Cost (the value of Smith’s life today) and subtracting the Residual Value (the estimated remaing value of Smith’s life ten years from now), then multiplying it by an Annual Percentage Rate of 4.3%, and dividing by the 120 months covered under the terms of the lease. At the end of the lease period, Smith will have the option to buy his life at its depreciated value. Should he subject himself to excess wear and tear, or terminate his lease before the end of the 10-year period, Smith will face additional fees.