Question

Tina made a down payment of 1200.00. her monthly payment is 200.00 for 36 months. What is the total cost of the lease if the residual value is 8500.00?

Answer 1

Total cost of the lease is 16,900 dollars.

Explanation:

Given the down payment is 1200 dollars.

Given the monthly payment is 200 dollars for 36 months.

Given the residual value is 8500 dollars.

Total cost of the lease is the sum of down-payment, total of all monthly payments, and residual value.

Total cost of the lease = Down payment + Total of all monthly payments + Residual value.

Total cost of the lease = 1200 + 200*36 + 8500.

Total cost of the lease = 1200 + 7200 + 8500 = 16,900 dollars.

Answer 2

$16900

Explanation:

Tina made a down payment = $1,200

Her monthly payment amount = $200 for 36 months. S

The total amount = Down payment + monthly total amount for 36 months

= $1,200 + 36 * $200

= $1,200 + $7,200

= $8,400.

Finally we will add the residual value: $8,400 + $8,500

= $16,900.

The total cost of the lease = $16,900.

Thank you.