Answer:
The answer is option (D) $20,072.00
Explanation:
The total cost to lease a car will involve all associated costs of leasing the car. This can be expressed as;
Total lease cost=security deposit+monthly lease payment+opportunity cost+end-of-lease charges
where;
security deposit=$320
monthly lease payment=$320
total lease payment=320×12×5=$19,200
opportunity cost=320×5×0.02=$32
end-of-lease charges=$520
replacing;
Total lease cost=(320+19,200+32+520)=$20,072.00
Cost to lease a car=$20,072.00
