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kkurt [141]
3 years ago
12

Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a res

idual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer’s monthly lease payment be? a. $93.84 b. $99.75 c. $209.03 d. $312.06
Mathematics
1 answer:
Allushta [10]3 years ago
4 0

Answer:

d. $312.06

Step-by-step explanation:

The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%

So, residual value is = 17500\times0.57= $9,975

The value of the car = 17500-9975 = $7,525

Monthly payment = \frac{7525}{36}= $209.03

Interest incurred = (17500+9975)\times0.00375= $103.03  

Hence, Jennifer’s monthly lease payment will be =

209.03+103.03 = $312.06

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