Question

Maggie Holden’s 2-year car lease costs $597 a month. She had to pay a $600 security deposit that she got back at the end of the lease. She made a down payment of $500 and paid fees of $125 to get the lease. What was the net cost of the lease to Maggie at the end of the lease?

Answer 1

Answer:

Net cost of the car lease Maggie has to pay at the end of lease is $$13953$.

Step-by-step explanation:

Given that,

2-years car lease cost per month is $597. Security amount which is refundable at the end of lease is $600. down payment and paid fees of lease made by her are $500 and $ 125.

To find:- Net cost of the lease to Maggie at the end of the lease?

From the question:-

Cost of lease per moth is $597.

security deposit amount is $600       (Refundable)

down payment made by her is $500.

and lease paid fees is $125.

Calculating the Net cost :-

              Net cost = cost of lease for 2-years - down payment + security                                  

                                  deposit + lease paid fees

                             = $597 \times 24 - 500 + 600+125$

                             = $14328 + 225$

                             = $14553$

Here the net cost of lease for 2 years is $ 14553.

But the security amount is refundable So,

              Final cost is $14553 - 600$ = $$13953$

Hence,

Net cost of the lease Maggie has to pay at the end of lease is $$13953$.