Question

The monthly payment for a car lease is $300 for 24 months. The down payment is $1,000. The residual value is 9,000. What is the total cost of the lease?

(A) $17,200

(B) $40,700

(C) $8,200

Answer 1

A) $17,200

This is because the residual value and down payment, $9,000 + $1,000 would be $10,000. Next, the monthly $300 multiplied by the 24 months would equal $7,200. Therefore, $10,000 + $7,200 = $17,200.