The term of the lease on a vehicle is about to expire. Answer parts a and b strictly on financial considerations.
a) If the market value of the vehicle is less than the residual value, what should the lessee do?
b) If the market value of the vehicle exceeds the residual value, what should the lessee do?
c) In view of your answers to a and b, will the interest rate on a lease contract tend to be higher or lower than the interest rate on a loan to purchase the same vehicle? Explain.

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The Answer of The term of the lease on a vehicle is about to expire. Answer parts a and b strictly on financial considerations.
a) If the market value of the vehicle is less than the residual value, what should the lessee do?
b) If the market value of the vehicle exceeds the residual value, what should the lessee do?
c) In view of your answers to a and b, will the interest rate on a lease contract tend to be higher or lower than the interest rate on a loan to purchase the same vehicle? Explain.

The Term of the Lease on a Vehicle Is About