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

The money factor on a lease of with interest rate of 9% is computed using the formula:
money factor = annual interest / 2400where:interest rate = 9%
money factor = 9/2400
money factor = 0.00375
The answer letters a. 0.00375Thank you for this question and hope this helps you.

Answer 2

The money factor can be determined by converting the interest rate through dividing the APR of 9% by 2,400. So,

APR / 2400 = Money Factor

9% / 2400 = 3.75 x 10^-3 or 0.00375.

Therefore, the answer is letter A) 0.00375