Determine the monthly payment for a 36 month lease on a $26,000 car with a residual of 71% and an interest rate of 7.5%. a. $104
2 answers:
Answer:
The correct answer is D. $348.38
Step-by-step explanation:
Number of months = 36
Lease amount = $26000
Residual value = 71%
= 0.71 × 26000
= $18460
Interest Rate = 7.5%
Step 1 : To calculate monthly depreciation by using the formula :
Step 2 : To calculate monthly financial charge by using the formula :
Monthly Financial Charge = (Lease amount + Residual value) × Money factor
= (26000 + 18460) × 0.003125
= $138.94
Step 3 : To calculate lease amount by using the formula :
Monthly Lease Amount = Monthly Depreciation + Financial Charge
= 209.44 + 138.94
= $348.38
Hence, The correct answer is D. $348.38
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