Question

The monthly payment for a car lease is $300 for 24 months. The down payment is $1,000. The residual value is $9,000. What is the total cost of the lease? A. 17,200. B. 40,700. C. 8,200

Answer 1

The total cost of the lease would be $17,200. This is because $300 payment for 24 months is equal to $7,200 + $1,000 (down payment) and + the residual value of $9,000 = $17,200.

Answer 2

Answer:

Option C - 8,200

Step-by-step explanation:

Given : The monthly payment for a car lease is $300 for 24 months. The down payment is $1,000. The residual value is $9,000.

To find : What is the total cost of the lease?          

Solution :

Total cost of the lease is the monthly payment times the number of months adding down payment.      

Monthly payment M=$300

Number of months n=24 months

Down payment  D=$1000          

$\text{Total cost of lease}=M\times n+D$    

$\text{Total cost of lease}=300\times 24+1000$  

$\text{Total cost of lease}=7200+1000$  

$\text{Total cost of lease}=8200$  

Therefore, Option C is correct.

The total cost of the lease is $8200.