Question

Given below are lease terms at the local dealership. What is the total cash due at signing?

Terms:

Length of lease = 36 months
MSRP of the car = $27,500
Purchase value of the car after lease = $17,500
Down payment = $3400
Monthly payment = $425
Security deposit = $375
Acquisition fee = $500
a) $4275
b) $3400
c) $4700
d) $375

Answer 1

The total cash due at signing for the car lease, add the down payment, first month's payment, security deposit, and acquisition fee together, which totals $4700 (option c).

Step-by-step explanation:

The total cash due at signing for the car lease includes several components, such as the down payment, the first month's payment, the security deposit, and the acquisition fee. To calculate this, we simply add up these individual costs:

• Down payment = $3400
  
• First month's payment = $425
  
• Security deposit = $375
  
• Acquisition fee = $500

Now, let's sum these amounts:

Total cash due at signing = Down payment + First month's payment + Security deposit + Acquisition fee

Total cash due at signing = $3400 + $425 + $375 + $500

Total cash due at signing = $4700

Therefore, the correct answer is c) $4700.