Sally is near the end of a three year lease on a car with an original MSRP of $38,000. Her leasing company claims that the car is now worth only $28,500. Which percentage represents the residual value of Sally’s leased car?

Residual value is the car’s value at the end of the lease compared with its original MSRP. Divide $28,500 by $38,000: $28,500 ÷ $38,000 = 0.75, or 75%. The correct choice is 75%.

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