The monthly lease payments for a four-year lease of the bulldozer are closest to:

Question

Quizplus · Accepted Answer

To calculate the monthly lease payments, we need to divide the total lease cost by the number of months in the lease term.

The bulldozer costs $90,000 and the lease is for 4 years, so the total lease cost is:

$90,000 / 4 = $22,500 per year

To convert this to a monthly cost, we divide by 12 months:

$22,500 / 12 = $1,875 per month

The closest option to this answer is B) $1,825, which is only $50 less per month. Therefore, B) is the best choice.

The Monthly Lease Payments for a Four-Year Lease of the Bulldozer