Question

Determine the money factor for a lease with an interest rate of 9%.

a. 0.00375
b. 0.03750
c. 2.16000
d. 21.60000

Answer 1

A is the correct answer

Answer 2

Answer: a. 0.00375

Explanation:

Lease is the number of months anybody will be leasing.

Money factor is the finance charge that are commonly expressed as a decimal or fraction.

To calculate the money factor we need to divide the interest rate by 2400.

Therefore, if interest rate = 9%

then, the money factor =
`(9)/(2400)=0.00375`

Hence, the money factor for a lease with an interest rate of 9%. = 0.00375