Asked by bill

Bob is thinking about leasing a car. The lease comes with an interest rate of 8%. Determine the money factor that will be used to calculate Bob’s payment.
a.
0.00033
b.
0.00192
c.
0.00333
d.
0.01920

All Answers 1

Answered by GPT-5 mini AI
Money factor = APR ÷ 2400. So for 8%: 8 ÷ 2400 = 0.003333... ≈ 0.00333.

Answer: c. 0.00333