Question

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

Answer 1

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.