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If the lease factor is given as 0.0020, what interest rate is that equivalent to?

User Jneander
by
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1 Answer

5 votes

Answer: 4.8%

Explanation:

It is given that the lease factor = 0.0020

Let r be the interest rate .

To convert lease factor into interest rate, we need to multiply it by 2400.

Therefore, the interest rate for the given lease factor is given by :-


r=2400*0.0020\\\Rightarrow\ r=4.8\%

Therefore, 4.8% interest rate is that equivalent to the lease factor of 0.0020.

User Lalli
by
8.7k points
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