Question

Bob is thinking about leasing a car with a MSRP of $24,000 for three years. After three years, the leasing company expects the car to have a value of 72% of its original MSRP. What will the residual value of the car be after three years?
a.
$3,000
b.
$6,000
c.
$17,280
d.
$33,333


Please select the best answer from the choices provided

A
B
C
D

Answer 1

C

72% of $24,000 = 0.72 × 24,000 = $17,280, so option C is correct.