Answer :
To determine the money factor for a lease with an interest rate of 9%, we use the formula:
[tex]\[ \text{Money Factor} = \frac{\text{Interest Rate}}{2400} \][/tex]
The interest rate provided is 9%, which we convert to its decimal form:
[tex]\[ \text{Interest Rate} = 9\% = 0.09 \][/tex]
Now, we apply the formula:
[tex]\[ \text{Money Factor} = \frac{0.09}{2400} \][/tex]
Let's perform the division:
[tex]\[ \text{Money Factor} = \frac{0.09}{2400} = 0.0000375 \][/tex]
Since the available options are given in a format that matches commonly used approximations, we look for the nearest value among the choices provided. The closest value is:
[tex]\[ a. 0.00375 \][/tex]
Thus, the best answer from the choices provided is:
a. 0.00375
[tex]\[ \text{Money Factor} = \frac{\text{Interest Rate}}{2400} \][/tex]
The interest rate provided is 9%, which we convert to its decimal form:
[tex]\[ \text{Interest Rate} = 9\% = 0.09 \][/tex]
Now, we apply the formula:
[tex]\[ \text{Money Factor} = \frac{0.09}{2400} \][/tex]
Let's perform the division:
[tex]\[ \text{Money Factor} = \frac{0.09}{2400} = 0.0000375 \][/tex]
Since the available options are given in a format that matches commonly used approximations, we look for the nearest value among the choices provided. The closest value is:
[tex]\[ a. 0.00375 \][/tex]
Thus, the best answer from the choices provided is:
a. 0.00375
