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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
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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
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3 votes

Answer:

Explanation:

I think its A

User Sanjiv
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