Question

You lease a car at $23,495 for 3 years at $429.95 a month with a $500 down payment. The interest is 30% of the payments and $4,643.46 in interest is paid over 3 years. What is the remaining balance when the lease ends? How did you arrive at $12,160.26?​

Answer 1

Explanation:

total interest paid is given as $4,643.46.

total payments = $429.95 x 36 months = $15,478.20

total lease payments = total payments - total interest

total lease payments = $15,478.20 - $4,643.46 = $10,834.74

Remaining balance = Total cost of the lease - Total lease payments

$23,495 - $10,834.74 = $12,660.26