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Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9. 5% interest rate for 36 months with a residual of 61. 3%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer's monthly lease payment be?
Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9. 5% interest rate for 36 months with a residual of 61. 3%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer's monthly lease payment be?
Jennifer's monthly leasepaymentwill be approximately $690.Jennifer's monthly leasepaymentcan be calculated using the following formula:Monthly Payment = ((Net CapitalizedCost -Residual Value) x Money Factor) / (1 - Residual Value)Where:Net CapitalizedCost = MSRP + additional fees (if any) - down paymentResidual Value= MSRP xResidual PercentageMoney Factor= Interest Rate / 2400Plugging in the given values, we get:Net Capitalized Cost = 17500 (assuming no additional fees or down payment)Residual Value = 17500 x 0.613 = 10727.50Money Factor = 0.095 / 2400 = 0.0000395833Substituting these values in the formula, we get:Monthly Payment = ((17500 - 10727.50) x 0.0000395833) / (1 - 0.613)Monthly Payment = (6772.50 x 0.0000395833) / 0.387Monthly Payment = 0.266986 / 0.387Monthly Payment = 0.689753Monthly Payment ≈ $690 (rounded to nearest dollar)Therefore, Jennifer's monthly lease payment will be approximately $690.Learn more aboutpaymentherebrainly.com/question/26049409#SPJ11...