Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer’s monthly lease payment be?

The residual value is 57% of $17,500: 0.57 × $17,500 = $9,975. The monthly depreciation charge is ($17,500 − $9,975) ÷ 36 = $209.03. The monthly finance charge is ($17,500 + $9,975) × (9% ÷ 2400) = $103.03. Adding the two charges gives $312.06, so the correct choice is D, $312.06.

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