Question

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Explanation:

Step1: Calculate Depreciation

First, find the residual value: \( 32000\times0.72 = 23040 \). Then, depreciation is \( 32000 - 23040 = 8960 \).

Step2: Calculate Finance Charge

Finance charge is \( (32000 + 23040)\times0.00354 = 55040\times0.00354 \approx 194.84 \).

Step3: Calculate Monthly Payment

Total cost for lease: \( 8960 + 194.84 = 9154.84 \). Monthly payment: \( 9154.84\div36 \approx 254.30 \)? Wait, maybe another approach. Wait, the money factor is for interest. Wait, correct formula for lease payment: Depreciation + Finance Charge. Depreciation per month: \( (32000 - 32000\times0.72)/36=(32000\times0.28)/36 = 8960/36\approx248.89 \). Finance charge: \( (32000 + 32000\times0.72)\times0.00354=(32000\times1.72)\times0.00354 = 55040\times0.00354\approx194.84 \). Wait, no, finance charge is average of capitalized cost and residual times money factor times months? Wait, maybe the formula is: Monthly payment = (Depreciation) + (Finance Charge). Depreciation: (MSRP - Residual)/Term. Residual = 320000.72=23040. Depreciation: (32000 - 23040)/36 = 8960/36 ≈248.89. Finance charge: (32000 + 23040)0.00354 = 550400.00354≈194.84. Wait, but that would be 248.89 + 194.84≈443.73? Wait, no, maybe I messed up. Wait, the money factor is the interest rate factor. The correct formula for the finance charge in a lease is (Capitalized Cost + Residual Value) × Money Factor × Term (months). Wait, Capitalized Cost is 32000, Residual is 23040, Term 36, Money Factor 0.00354. So finance charge: (32000 + 23040)0.00354*36? No, money factor is per month. Wait, money factor is annual interest rate divided by 2400 (for simple interest). So monthly interest rate is money factor. So finance charge is (Capitalized Cost + Residual) × Money Factor. Wait, no, the formula for monthly lease payment is: (Depreciation) + (Finance Charge), where Depreciation = (Capitalized Cost - Residual)/Term, Finance Charge = (Capitalized Cost + Residual) × Money Factor. Let's compute:

Depreciation: (32000 - 32000×0.72)/36 = (32000×0.28)/36 = 8960/36 ≈ 248.89.

Finance Charge: (32000 + 32000×0.72)×0.00354 = (32000×1.72)×0.00354 = 55040×0.00354 ≈ 194.84.

Wait, but then total monthly payment is 248.89 + 194.84 ≈ 443.73? But option d is $443.73. Wait, maybe my initial depreciation calculation was wrong. Wait, no, let's recalculate:

Residual value: 32000 * 0.72 = 23040.

Depreciation amount: 32000 - 23040 = 8960.

Monthly depreciation: 8960 / 36 ≈ 248.89.

Finance charge: (32000 + 23040) 0.00354 = 55040 0.00354. Let's calculate 55040 0.00354: 55040 0.003 = 165.12, 55040 * 0.00054 = 29.7216, total ≈165.12 + 29.7216 = 194.8416.

Then total monthly payment: 248.89 + 194.8416 ≈ 443.73. So that's option d.

Answer:

d. $443.73