Question

Jacob has taken an suv on lease from free cruisers inc. for a period of four years. jacob does not need to pay any extra amount, based on the residual value of the car, at the end of the fourth year. he has a _____.

Answer 1

What Jacob will have is a lose ended lease. It is because the close ended lease has been provided to him because he needs to surrender or to turn in his car, specifically the SUV, which is at the end of the term of the lease.