Determine the money factor for a lease with an interest rate of 9%.
2 answers:
Answer: a. 0.00375
Step-by-step explanation:
Lease is the number of months anybody will be leasing.
Money factor is the finance charge that are commonly expressed as a decimal or fraction.
<em>To calculate the money factor we need to divide the interest rate by 2400.</em>
Therefore, if interest rate = 9%
then, the money factor =
Hence, the money factor for a lease with an interest rate of 9%. = 0.00375
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[|] Answer [|]
[|] Explanation [|]
Rewrite the equation with parts separated:
8 + 7/9 - 3 - 2/3
Solve the whole number parts:
8 - 3 = 5
Solve the fraction parts:
7/9 - 2/3
Find LCD of 7/9 & 2/3
7/9 - 6/9 = 1/9
5 + 1/9 = 5 1/9