Answer:
The correct answer is D. $348.38
Step-by-step explanation:
Number of months = 36
Lease amount = $26000
Residual value = 71%
= 0.71 × 26000
= $18460
Interest Rate = 7.5%
[tex]\text{Money factor = }\frac{7.5}{2400}=0.003125[/tex]
Step 1 : To calculate monthly depreciation by using the formula :
[tex]\text{Monthly Depreciation = }\frac{\text{Lease amount - Residual Value}}{\text{Number of months}}\\\\ \text{Monthly Depreciation = }\frac{26000-18460}{36}=\$209.44[/tex]
Step 2 : To calculate monthly financial charge by using the formula :
Monthly Financial Charge = (Lease amount + Residual value) × Money factor
= (26000 + 18460) × 0.003125
= $138.94
Step 3 : To calculate lease amount by using the formula :
Monthly Lease Amount = Monthly Depreciation + Financial Charge
= 209.44 + 138.94
= $348.38
Hence, The correct answer is D. $348.38
