henry is at the end of a three-year lease for his car. his leasing company says that his car is currently worth $12,780, a 72% residual value. determine the original msrp of henrys leased car.
a. $9,201.60
b. $5,633.80
c. $17,750.00
d. $45,642.86

please select the best answer from the choices provided

Question

henry is at the end of a three-year lease for his car. his leasing company says that his car is currently worth $12,780, a 72% residual value. determine the original msrp of henrys leased car.
a. $9,201.60
b. $5,633.80
c. $17,750.00
d. $45,642.86

please select the best answer from the choices provided

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [ "Residual Value" ], "new_concepts": [], "current_concepts": [ "Residual Value", "Car Lease Calculation" ] } ## Identify the given values and formula $$ \begin{aligned} &\text{Residual Value} = \$12,780\ &\text{Residual Percentage} = 72\% = 0.72\ &\text{Residual Value} = \text{MSRP} \times \text{Residual Percentage} \end{aligned} $$ ## Solve for the original MSRP $$ \begin{aligned} &\text{MSRP} = \frac{\text{Residual Value}}{\text{Residual Percentage}}\ &\text{MSRP} = \frac{12780}{0.72} = 17750 \end{aligned} $$ ## Match with the given options $$ \text{MSRP} = \$17,750.00 \implies \text{Option c} $$

a. $9,201.60

b. $5,633.80

c. $17,750.00

d. $45,642.86

{ "subject": "Business", "question_type": "Multiple Choice", "knowledge_point": [ "Business", "Car Financing", "Residual Value" ] }

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Question

Explanation:

Identify the given values and formula

Solve for the original MSRP

Match with the given options

Answer: