Determine the money factor for a lease with an interest rate of 9%
Answer
A
0 point 0 0 3 7 5
B
2 point 1 6 0 0 0
C
0 point 0 3 7 5 0
D
21 point 6 0 0 0 0
Explanation
To convert an interest rate to a lease money factor, divide the rate expressed as a percentage by 2,400. So 9 ÷ 2,400 = 0.00375. The correct choice is A, 0.00375.
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