140k views
0 votes
9. What is the money factor for a lease with an interest rate of 8%.

a. 0.00375
b. 0.00333
C. 2.26000
d. 22.60000

User Gal Weiss
by
8.8k points

2 Answers

2 votes
a. 0.00375

The money factor (also known as the lease factor) is the equivalent interest rate used to calculate the monthly lease payment in a car lease. It is expressed as a decimal rather than a percentage.

To convert an interest rate to a money factor, divide it by 2400:

Money factor = Interest rate / 2400

In this case, for an interest rate of 8%:

Money factor = 8 / 2400 = 0.00375

So, the money factor for a lease with an interest rate of 8% is 0.00375.
User Qzio
by
8.3k points
3 votes

Answer:

Explanation:

I think its A

User Sanjiv
by
8.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories