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? a. $93.84 b. $99.75 c. $209.03 d. $312.06

The correct answer is D. $312.06

Step-by-step explanation:

We are given that :

MSRP = $17500 , time = 36 months , interest rate = 9% , residual value = 57%

Exact residual value = 57% of 17,500 = $9975

Also, we know Money factor = rate ÷ 2400

⇒ money factor = 0.00375

Step 1 : To calculate monthly depreciation by using the formula :

Step 2 : To calculate monthly financial charge by using the formula :

Step 3 : To calculate lease amount by using the formula :

So, the approximate lease payment is $312.06