Question

Cindy has decided to lease a car. the lease includes a money factor of 0.00354. what interest rate is cindy being charged in her lease? a. 0.85% b. 8.5% c. 1.475% d. 14.75% please select the best answer from the choices provided a b c d

Answer 1

The interest rate Cindy will be charged with money factor 0.00354 is approximately 8.5% which is option b.

Given The factor included in lease is 0.00354.

Interest is the amount that a bank or person who gives loan charges from loan taker.

Money factor is a method for finding the financing charges on a lease with monthly payments. The money factor can be translated into the annual percentage rate by multiplying the money factor by 2400.

Money factor=0.00354.

So the interest rate that Cindy will charge is equal to 2400*0.00354

The interest rate Cindy will be charged =8.496%

=8.5%

Hence the interest rate charged is approximately 8.5%.

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