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.

Question

Mathematics

Magdalena Moses

23 October, 04:42

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.

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Answers (1)

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Shyann Heath · Answer 1

Money factor is an alternative way in solving leasing problems. money factor can be converted to annual percentage rate (APR) and vice versa.

APR = 2400 x money factor

so money factor can be solve using

money factor = APR / 2400

money factor = 8% / 2400

money factor = 0.0033333