Question

jennifer is leasing a car from a local auto retailer. the terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. the msrp for the car jennifer is leasing is $17,500. what will jennifers monthly lease payment be?
a. $93.84
b. $99.75
c. $209.03
d. $312.06

please select the best answer from the choices provided

Explanation:

Calculate the residual value and depreciation

Using the Residual Value knowledge point

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Convert interest rate to money factor

Using the Money Factor Conversion knowledge point

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Calculate the monthly finance fee and total payment

Using the Car Lease Calculation knowledge point

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Answer:

• a. $93.84
• b. $99.75
• c. $209.03
• d. $312.06 (Correct answer)