Bob is thinking about leasing a car. The lease comes with an interest rate of 8%. Determine the money factor that will be used t

Question

2 years ago

14

o calculate Bob’s payment. A. 0. 00033 b. 0. 00192 c. 0. 00333 d. 0. 1920.

1 answer:

Sedaia [141] · Answer 1 · 2023-02-16T05:19:33+03:00

The money factor will be used to calculate Bob’s payment is 0.0033.

Given

Bob is thinking about leasing a car.

The lease comes with an interest rate of 8%.

<h3>How to calculate the money factor?</h3>

The money factors can be converted to interest rates by multiplying by 2,400.

In the same vein, if the car dealer uses an interest rate, this can be converted to a money factor by dividing by 2,400.

$\rm APR = 2400 \times money\ factor\\\\Money \ factor = \dfrac{ARP}{2400}$

Therefore,

The money factor will be used to calculate Bob’s payment is;

$\rm APR = 2400 \times money\ factor\\\\Money \ factor = \dfrac{ARP}{2400}\\\\Money \ factor = \dfrac{0.08}{2400}\\\\Money \ factor =0.0033$

Hence, the money factor will be used to calculate Bob’s payment is 0.0033.

To know more about the Money factor click the link given below.