Question

For its year-end model clearance sale, a new auto dealership is offering a 2-year lease with $1,999.00 due at signing, which includes all taxes, titles, and fees. The lessee is responsible for $0.12 per mile more than 12.000 miles driven per year and must have approved credit. If the total lease cost is $6,775.00. how much is the monthly lease payment?

Answer 1

Monthly lease payment is $199

Step-by-step explanation:

Duration of lease = 2 year

Amount due at signing = $1999.00

The lesse responsibe for $0.12 per mile when it is over 12000 miles per year

Total lease cost = $6775

Since we are only concerned about the payment of the lease, we will only consider Total lease cost, the amount due at signing and the lease period

Amount to be paid after paying the initial amount at signing:

`\begin{gathered} =\text{ Total lease cost -}Amount\text{ due at signing} \\ =\text{ 6775 - 1999} \\ \text{amount remaining to be paid }=\text{ \$4776} \end{gathered}`

To calculate monthly lease payment:

`\text{monthly lease payment = }\frac{\text{amount remaining to be paid}}{nu\text{mber of months in the lease period}}`

Number of months in 2 years = 2(12 months) = 24 months

`\begin{gathered} \text{monthly lease payment = }(4776)/(24) \\ \text{monthly lease payment = \$199} \end{gathered}`