13
QuizMultiple Choice

Leasing vs. Buying a Car

Question 13 • 26-27 Ignite Technical Math-Financial Math - MA2007

Determine the money factor for a lease with an interest rate of 9%.

Answer
A
0.00375
B
0.03750
C
2.16000
D
21.60000

Explanation

To convert an annual interest rate to a lease money factor, divide the rate by 2,400. For 9%, calculate 9 ÷ 2,400 = 0.00375, so the money factor is 0.00375 (choice A).

AI-written and checked against the verified answer.

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