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The money factor will be used to calculate Bob’s payment is 0.0033.
Given
Bob is thinking about leasing a car.
The lease comes with an interest rate of 8%.
The money factors can be converted to interest rates by multiplying by 2,400.
In the same vein, if the car dealer uses an interest rate, this can be converted to a money factor by dividing by 2,400.
[tex]\rm APR = 2400 \times money\ factor\\\\Money \ factor = \dfrac{ARP}{2400}[/tex]
Therefore,
The money factor will be used to calculate Bob’s payment is;
[tex]\rm APR = 2400 \times money\ factor\\\\Money \ factor = \dfrac{ARP}{2400}\\\\Money \ factor = \dfrac{0.08}{2400}\\\\Money \ factor =0.0033[/tex]
Hence, the money factor will be used to calculate Bob’s payment is 0.0033.
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