Asked by a

Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer’s monthly lease payment be?
a.
$93.84
b.
$99.75
c.
$209.03
d.
$312.06


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
D

Work:
- Residual = 0.57 × $17,500 = $9,975
- Depreciation = (17,500 − 9,975) / 36 = $7,525 / 36 = $209.03
- Money factor = 9% / 2400 = 0.00375
- Finance charge = (17,500 + 9,975) × 0.00375 = $27,475 × 0.00375 = $103.03
- Monthly payment = 209.03 + 103.03 = $312.06