3
QuizMultiple Choice

Leasing vs. Buying a Car — Quiz

Question 3 • Personal Finance

Henry is at the end of a three-year lease for his car. His leasing company says that his car is currently worth 12 dollars comma 780 , a 72% residual value. Determine the original MSRP of Henry’s leased car.

Answer
A
17 dollars comma 750 point 0 0
B
5 dollars comma 633 point 8 0
C
9 dollars comma 201 point 6 0
D
45 dollars comma 642 point 8 6

Explanation

The car’s value at the end of the lease is 72% of its original MSRP, so let the MSRP be x and solve 0.72x = $12,780. Dividing gives x = $12,780 ÷ 0.72 = $17,750, so the original MSRP was $17,750, choice A.

AI-written and checked against the verified answer.

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