Question

The monthly payment for a car lease is $530 for 18 months. The down payment is $2,000. The residual value is $7,000. What is the total cost of the lease?

Answer 1

530(18) + 2000 + 7000 = 18,540

Answer 2

Answer:

$18,540

Step-by-step explanation:

Tina made a down payment = $2000

Her monthly payment amount = $530 for 18 months.

So, lease for 18 months = $18 \times 530$

                                      = $9540$

The total amount = Down payment + monthly total amount for 18 months

= $2000 + $9540

= $2000 + $9540

= $11,540

Now we are given that The residual value is $7,000.

So, Total cost =  $11540 + $7000

                      = $18,540

Hence The total cost of the lease is $18,540