Question

determine the money factor for a lease with an interest rate of 9%.
a. 0.00375
b. 0.03750
c. 2.16000
d. 21.60000

please select the best answer from the choices provided
a
b
c
d

Explanation:

Identify the given interest rate

$$ \text{Interest Rate (APR)} = 9\% = 0.09 $$

Apply the money factor conversion formula

$$ \text{Money Factor} = \frac{\text{APR}}{2400} = \frac{9}{2400} $$

Calculate the final value

$$ \text{Money Factor} = 0.00375 $$

Answer:

• a. 0.00375 (Correct answer)
• b. 0.03750
• c. 2.16000
• d. 21.60000