Bob is thinking about leasing a car. The lease comes with an interest rate of 8%. Determine the money factor that will be used to calculate Bob’s payment.

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asked Feb 1, 2018 226k views

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Pietroppeter · Answer 1 · 2018-02-05T21:41:10+0000

money factor is an alternative way in solving leasing problems. money factor can be converted to annual percentage rate ( APR) and vice versa.

APR = 2400 x money factor
so money factor can be solve using
money factor = APR / 2400
money factor = 8% / 2400
money factor = 0.0033333

Bob is thinking about leasing a car. The lease comes with an interest rate of 8%. Determine the money factor that will be used to calculate Bob’s payment.

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