Question

Determine the money factor for a lease with an interest rate of 9%.

Answer 1

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.

To calculate the money factor we need to divide the interest rate by 2400.

Therefore, if interest rate = 9%

then, the money factor =$\frac{9}{2400}=0.00375$

Hence, the money factor for a lease with an interest rate of 9%. = 0.00375

Answer 2

A is the correct answer