The financing rate on the car you are leasing is called the
A)money factor.
B)capitalized cost.
C)residual value.
D)purchase option.
E)capitalcost reduction.

Question

Quizplus · Accepted Answer

The financing rate on a car lease is called the money factor or lease factor. It is similar to the interest rate on a loan, but instead of being expressed as a percentage, it is a decimal number that is multiplied by the lease balance to determine the monthly finance charge.

The Financing Rate on the Car You Are Leasing Is