Geometric mean 10 and 50
1 answer:
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<h3>Option A</h3><h3>The monthly lease payment for a 36-month lease on a car is $ 358.64</h3>
<em><u>Solution:</u></em>
Given that,
MSRP of car = $29,000
Percentage of residual = 79% =
<em><u>Find residual value</u></em>
<em><u>Find the depreciation amount</u></em>
Depreciation amount = cost - residual value
Depreciation amount = 29000 - 22910 = 6090
<em><u>Find Base monthly lease payment</u></em>
<em><u>Find Interest per month</u></em>
<em><u>Find monthly lease payment</u></em>
Monthly lease payment = Base monthly lease payment + Interest per month
Monthly lease payment = 169.1667 + 189.4715 = 358.6382
Thus monthly lease payment is $ 358.64
Option A is correct