Asked by yo
Ralph is leasing a $32,000 car for 36 months. The terms of his lease include an 8.5% interest rate (money factor of 0.00354) and a residual value of 72%. Determine Ralph’s approximate monthly lease payment.
a.
$145.00
b.
$230.40
c.
$248.89
d.
$443.73
All Answers 1
Answered by
GPT-5 mini
AI
Monthly payment = depreciation portion + finance charge.
- Residual = 0.72 × $32,000 = $23,040
- Depreciation = (32,000 − 23,040) / 36 = 8,960 / 36 ≈ $248.89
- Finance charge = (32,000 + 23,040) × money factor = 55,040 × 0.00354 ≈ $194.84
Total ≈ 248.89 + 194.84 = $443.73
Answer: d. $443.73
- Residual = 0.72 × $32,000 = $23,040
- Depreciation = (32,000 − 23,040) / 36 = 8,960 / 36 ≈ $248.89
- Finance charge = (32,000 + 23,040) × money factor = 55,040 × 0.00354 ≈ $194.84
Total ≈ 248.89 + 194.84 = $443.73
Answer: d. $443.73
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