Question

Maggie Holden’s 2-year car lease costs $597 a month. She had to pay a $600 security deposit that she got back at the end of the lease. She made a down payment of $500 and paid fees of $125 to get the lease. What was the net cost of the lease to Maggie at the end of the lease?

Answer 1

Net cost of the car lease Maggie has to pay at the end of lease is $
`13953`.

Explanation:

Given that,

2-years car lease cost per month is $597. Security amount which is refundable at the end of lease is $600. down payment and paid fees of lease made by her are $500 and $ 125.

To find:- Net cost of the lease to Maggie at the end of the lease?

From the question:-

Cost of lease per moth is $597.

security deposit amount is $600 (Refundable)

down payment made by her is $500.

and lease paid fees is $125.

Calculating the Net cost :-

Net cost = cost of lease for 2-years - down payment + security

deposit + lease paid fees

=
`597 * 24 - 500 + 600+125`

=
`14328 + 225`

=
`14553`

Here the net cost of lease for 2 years is $ 14553.

But the security amount is refundable So,

Final cost is
`14553 - 600` = $
`13953`

Hence,

Net cost of the lease Maggie has to pay at the end of lease is $
`13953`.