Question

Find the total cost of a 36 month car lease, if: monthly payment = $175 down payment = $1,500 residual value = $10,000

Answer 1

17,800 is correct answer or the third one

Answer 2

$17,800.

Explanation:

We have been given that the monthly payment of car is $175, down payment is $1500 and residual value is $10,000.

To find the total cost we will multiply monthly car payment by 36 and then add the amount of down payment and residual value to the result.

`\text{Total cost }=(36* \$175)+\$1500+10,000`

`\text{Total cost }=\$6300+\$1500+10,000`

`\text{Total cost }=\$17800`

Therefore, the total cost of the car lease is $17,800.