Question

Given the lease terms below, find the total lease cost, assuming that the deposit is nonrefundable. Terms: 11 Length of lease: 24 months MSRP of the car: $21,400 Purchase value of the car after lease: $17,100 Down payment: $1500 Monthly payment: $279 Security deposit: $350 Acquisition fee: $700 O A. $4678 OB. $9246 C. $17,100 D. $10,876​

Answer 1

The total lease cost is the sum of the down payment, monthly payments, security deposit, and acquisition fee, which equals $9246. So the correct answer is option B.

Step-by-step explanation:

To calculate the total lease cost, one must consider the down payment, monthly payments, security deposit, and acquisition fee, while remembering that the security deposit is nonrefundable.

The total lease cost is calculated as follows:

1. Down payment: $1500
2. Total monthly payments: $279 x 24 months = $6696
3. Security deposit: $350 (nonrefundable)
4. Acquisition fee: $700

So, adding these up: $1500 (down payment) + $6696 (monthly payments) + $350 (security deposit) + $700 (acquisition fee) = $9246.