Question

cindy has decided to lease a car. the lease includes a money factor of 0.00354. what interest rate is cindy being charged in her lease?
a. 0.85%
b. 8.5%
c. 1.475%
d. 14.75%

please select the best answer from the choices provided

a
b
c
d

Explanation:

Identify the given money factor

$$ \text{Money Factor} = 0.00354 $$

Apply the conversion formula to find the interest rate (APR)

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

Calculate the final percentage value

$$ \text{Interest Rate} = 0.00354 \times 2400 = 8.496\% \approx 8.5\% $$

Answer:

• a. 0.85%
• b. 8.5% (Correct answer)
• c. 1.475%
• d. 14.75%