Question

Given the lease terms below, what is the total price of this car if you buy it

after leasing, and you do not get the security deposit back?
Terms:
• 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. $26,346
B. $29,246
C. $27,100
OD. $20,876

Answer 1

9514 1404 393

Answer:

A. $26,346

Explanation:

The cost is the sum of all of the payments made:

cost = down payment +24×monthly payment +deposit +acquisition fee +after-lease price

cost = $1500 +24×279 +350 +700 +17100 = $26,346

The total price of the car if you buy it after leasing is $26,346.