A money factor of 0.00280 on a lease is equivalent to an annual percentage rate of
A) 2.80.
B) 3.60.
C) 6.72.
D) 8.64.
E) 10.80.

Name: A money factor of 0.00280 on a lease is equivalent to an annual percentage rate of A) 2.80. B) 3.60. C) 6.72. D) 8.64. E) 10.80.
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Question

Quizplus · Accepted Answer

To convert the money factor to an annual percentage rate (APR), we need to use the following formula: APR = Money Factor x 2400. So, in this case, APR = 0.00280 x 2400 = 6.72%. Therefore, the best choice is C.

A Money Factor of 0