Question

Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer’s monthly lease payment be? a. $93.84 b. $99.75 c. $209.03 d. $312.06

Answer 1

Answer:(D) 312.06

Step-by-step explanation: Its option D on Edge 2020 if it's not D on your test it's 312.06

Answer 2

d. $312.06

Explanation:

The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%

So, residual value is =
`17500*0.57`= $9,975

The value of the car =
`17500-9975` = $7,525

Monthly payment =
`(7525)/(36)`= $209.03

Interest incurred = (17500+9975)\times0.00375= $103.03

Hence, Jennifer’s monthly lease payment will be =

`209.03+103.03` = $312.06