Asked by a

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


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
D

Calculation:
- Residual = 0.72 × $32,000 = $23,040
- Depreciation fee = (32,000 − 23,040)/36 = $8,960/36 ≈ $248.89
- Finance fee = (32,000 + 23,040) × 0.00354 = 55,040 × 0.00354 ≈ $194.84
- Monthly payment ≈ 248.89 + 194.84 = $443.73