Question

Given the lease terms below, what is the total price of this car if you buy it

after leasing, and you do not get the security deposit back?

Terms:
• Length of lease: 36 months
• MSRP of the car: $21,400
• Purchase value of the car after lease: $17,100
• Down payment: $1,500
• Monthly payment: $229
• Security deposit: $350
• Acquisition fee: $700

Answer choices:
A. $29,246
B. $27,894
C. $21,100
D. $24,678

Answer 1

Answer: B

Step-by-step explanation:

Confirmed

Answer 2

B. $27,894

Step-by-step explanation:

Total price will be all the costs incurred from leasing to buying.

Purchase value of the car after lease: $17,100

Down Payment: $1500

Monthly Payment: $229 x 36 = $8,244

Security Deposit: $350

Acquisition fee: $700

Total costs = $17, 100+ $1500 + $8,244 + $350 + $700

= $27,894