Question

to calculate your monthly lease payment on a three-year lease using the "residual value" of a $26,500 MSRP car, subtract the 48% residual value from the MSRP and divide the result by the number of agreed upon months. What is the approximate monthly payment on a three-year lease agreement?

Answer 1

The approximate monthly payment is $383

Step-by-step explanation:

Here, we want to calculate the approximate monthly payment on a 3-year lease agreement and we have been told what to do in the question.

Firstly, we start off by subtracting 48% residual value from the MSRP

48% of 26,500 = 48/100 * 26,500 = $12,720

We subtract this from $26,500

That will be $26,500 - $12,720 = $13,780

We have 3 years and that is 36 months

So the approximate monthly payment will be;

$13,780 / 36 = 382.7777777777778 which is approximately $383 to the nearest whole digit