Question

If the lease factor is given 0.00045, what interest rate is that equivalent to

Answer 1

Answer: 1.08%

Explanation:

Confirmed

Answer 2

To convert the lease factor (also called as money factor) into the equivalent interest rate, we simply have to multiply it with 2,400. So we use the formula:

interest rate = 2,400 * lease factor

Therefore,

interest rate = 2,400 * 0.00045

interest rate = 1.08% (ANSWER)