8
QuizMultiple Choice

Leasing vs. Buying a Car — Quiz

Question 8 • Personal Finance

Cindy would like to lease a car worth $56,000 for a three-year period. The leasing company told Cindy that after three years, the car would have a residual value of $40,320. How much of the car’s original value will Cindy have to pay off during her three-year lease?

Answer
A
$1,389
B
$40,320
C
$7,200
D
$15,680

Explanation

Cindy pays off the portion of the car’s value that it is expected to lose during the lease. Subtract the residual value from the original value: $56,000 − $40,320 = $15,680. The correct choice is $15,680.

AI-written and checked against the verified answer.