Question

ralph is leasing a car worth \\$24,000 for three years. his leasing company says that the car ralph is leasing will only be worth \\$16,000 at the end of his lease. approximately what percentage of the cars original value will ralph need to pay as part of his lease?
a. 8%
b. 16%
c. 33%
d. 67%

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

Explanation:

Calculate depreciation amount

Using the Car Lease Calculation and Residual Value knowledge points

$$ \text{Depreciation} = \$24,000 - \$16,000 = \$8,000 $$

Calculate depreciation percentage

Using the Car Lease Calculation knowledge point

$$ \text{Percentage} = \frac{\$8,000}{\$24,000} \approx 0.3333 = 33.33\% $$

Match with options

Using the Car Lease Calculation knowledge point

$$ 33.33\% \approx 33\% \implies \text{Option c} $$

Answer:

• a. 8%
• b. 16%
• c. 33% (Correct answer)
• d. 67%