Question

Bob is thinking about leasing a car. the lease comes with an interest rate of 8%. determine the money factor that will be used to calculate bob’s payment. a. 0.00033 b. 0.00192 c. 0.00333 d. 0.01920

Answer 1

The money factor that will be used to calculate Bob's payment is 0.00333 if the annual percentage rate is 8% option (c) is correct.

What is money factor?

It is defined as the ratio of the annual percentage rate to 2400. Usually, it can be used to calculating the financing costs of a lease with monthly installments.

Bob is thinking about leasing a car, the lease comes with an interest rate of 8%.

The annual percentage rate(APR) = 8%

We know the formula for finding the money factor is given by:

$\rm Money \ factor = \frac{APR}{2400}$

$\rm Money \ factor = \frac{8}{2400}$

Money factor = 0.00333

Thus, the money factor that will be used to calculate Bob's payment is 0.00333 if the annual percentage rate is 8% option (c) is correct.

Learn more about the money factor here:

brainly.com/question/9583229