The total depreciation fee for this car is D. $183.33.
What is the formula for depreciation fee for car?
The formula for calculating the monthly depreciation fee for a car is as follows:
Depreciation fee = (MSRP - Purchase value after lease - Down Payment)/Lease period
Data and Calculations:
Length of lease: 36 months
MSRP (Manufacturers Suggested Retail Price) of the car = $27,500
Purchase value of the car after lease = $17,500
Down payment = $3,400
Monthly payment = $425
Security deposit = $375
Acquisition fee = $500
Depreciation fee = $183.33 ($27,500 - $17,500 - $3,400)/36
Answer Options:
A. $247.50
B. $232.50
C. $227.50
D. $183.33
Thus, the total depreciation fee for this car is D. $183.33.
Learn more about car purchase and MSRP at https://brainly.com/question/9819371
