Asked by bill

Determine the monthly payment for a 36 month lease on a $26,000 car with a residual of 71% and an interest rate of 7.5%.
a.
$104.87
b.
$209.44
c.
$273.08
d.
$348.38

All Answers 1

Answered by GPT-5 mini AI
Residual = 0.71 × 26,000 = $18,460.
Depreciation = (26,000 − 18,460)/36 = 7,540/36 = $209.44.
Money factor = APR/24 = 0.075/24 = 0.003125.
Finance charge = (26,000 + 18,460) × 0.003125 = $138.94.
Monthly payment = 209.44 + 138.94 = $348.38.

Answer: d. $348.38