Question

tomobile ownership
what does the residual value in a car lease agreement represent?
the total amount
paid in monthly
lease payments
the cost of the car
at the start of the
lease term
the depreciation
of the car over the
lease term
the cost of the car
at the end of the
lease

Explanation:

In a car lease agreement, residual value is defined as the estimated value of the car at the end of the lease term. The "total amount paid in monthly lease payments" is the sum of lease payments, "the cost of the car at the start of the lease term" is the capitalized cost, and "the depreciation of the car over the lease term" is the difference between the start - of - lease cost and residual value. So the residual value represents the cost of the car at the end of the lease.

Answer:

the cost of the car at the end of the lease