Answer:
The simplified formula for calculating the monthly lease payment is:
C. Depreciation fee + finance fee.
Explanation:
The monthly lease payment is based on two main factors: the depreciation fee and the finance fee. The depreciation fee is the difference between the vehicle's initial value (often referred to as the capitalized cost) and its residual value at the end of the lease term. The finance fee is essentially the interest charged on the lease, and is calculated based on the capitalized cost and the money factor (which is similar to an interest rate).
Therefore, the formula for calculating the monthly lease payment is:
Monthly lease payment = (Capitalized cost - Residual value) / Lease term + (Capitalized cost + Residual value) x Money factor
Note that there may be additional fees and charges associated with a lease, such as acquisition fees, down payments, and taxes, but these are not included in the simplified formula for calculating the monthly lease payment.