Question

The residual value in a car lease agreement is what the leasing company believes the car will be worth at the end of your lease. It is what will cost you to purchase the car when the lease expires. A typical residual value is 48% of the manufacturers suggested retail price(MSRP). On a 22000 MSRP, your residual value is

Answer 1

Answer:

$10,560

Step-by-step explanation:

Given the MSRP as $22,000 and the residual value as 48%, the residual value of the car can be calculated as:

$Residual \ Value=MSRP\times \ Residual \ Rate\\=22000\times 48\%\\=10560$

#Hence, the car's residual value at the end of the lease period is $10,560