Question

Calculate the monthly lease payment for a 36-month lease on a car with a $29,000 MSRP, a 79% residual value, and a money factor of 0.00365.
a.
$358.64
b.
$128.08
c.
$169.17
d.
$105.85

Answer 1

Option A

The monthly lease payment for a 36-month lease on a car  is $ 358.64

Solution:

Given that,

MSRP of car = $29,000

Percentage of residual = 79% = $\frac{79}{100} = 0.79$

Find residual value

$\text{Residual value } = \text{ MSRP } \times \text{ Percentage of residual } \\\\\text{Residual value } = 29000 \times 0.79 \\\\\text{Residual value } = 22910$

Find the depreciation amount

Depreciation amount = cost - residual value

Depreciation amount =  29000 - 22910 = 6090

Find Base monthly lease payment

$\text{Base monthly lease payment } = \frac{ \text{ Depreciation amount }}{ \text{ number of months }}$

$\text{ Base monthly lease payment } = \frac{6090}{36} = 169.1667$

Find Interest per month

$\text{ Interest per month } = (cost + residual ) \times \text{ money factor }$

$\text{Interest per month } = (29000 + 22910) \times 0.00365= 189.4715$

Find monthly lease payment

Monthly lease payment = Base monthly lease payment + Interest per month

Monthly lease payment = 169.1667 + 189.4715 = 358.6382 $\approx 358.64$

Thus monthly lease payment is $ 358.64

Option A is correct

Answer 2

Answer:

358.64

Step-by-step explanation:

just took the test on edge. Hope this helps❤️