Jennifer is looking to lease a car. Bob’s Auto has a car available with a money factor of 0.00344. AAA Auto has the exact same car available with a money factor of 0.00313. Which of the following statements is true?

A lower money factor generally means a lower finance charge in a car lease, which reduces the monthly payment when the other terms are the same. AAA Auto’s money factor is 0.00313, lower than Bob’s Auto’s 0.00344. Therefore, AAA Auto’s lower money factor will give Jennifer the lowest monthly payment.

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