A money factor of 0.0028 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 0.0028 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 a money factor to an annual percentage rate (APR), you need to multiply it by 2400. Thus,

0.0028 x 2400 = 6.72

Therefore, the APR is 6.72%. The correct answer is C.

A Money Factor of 0