Question

Given the lease terms below, find the total lease cost, assuming that the deposit and acquisition fee are nonrefundable.

Terms:

Length of lease: 24 months
MSRP of the car: $27,000
Purchase value of the car after lease: $16,200
Down payment: $2000
Monthly payment: $410
Security deposit: $350
Acquisition fee: $400
a. $16,200

b. $12,590

c. $9840

d. $11,840

Answer 1

The total lease cost is $12,590.

Step-by-step explanation:

To find the total lease cost, we need to calculate the sum of the down payment, monthly payments, security deposit, and acquisition fee.

The down payment is $2000, so we start by adding that to the total.

The monthly payment is $410 for 24 months, so we multiply that by 24 and add it to the total.

The security deposit is $350, and the acquisition fee is $400, so we add both of those to the total.

Adding all these amounts gives us a total lease cost of $12,590.