Question

approximate the interest rate for a lease that comes with a money factor of 0.0027.
a. 0.65%
b. 1.13%
c. 6.5%
d. 11.25%

please select the best answer from the choices provided

a
b
c
d

Explanation:

State the conversion formula

$$ \text{Interest Rate (APR)} = \text{Money Factor} \times 2400 $$

Calculate the interest rate

$$
LATEXBLOCK0
$$

Match with the closest option

$$ 6.48\% \approx 6.5\% $$

Answer:

• a. 0.65%
• b. 1.13%
• c. 6.5% (Correct answer)
• d. 11.25%