2
QuizMultiple Choice

Using Graphs to Advertise — Cumulative exam

Question 2 • FowU - Financial Math - B

Cindy would like to lease a car worth $56,000 for a three-year period. The leasing company told Cindy that after three years, the car would have a residual value of $40,320. How much of the car’s original value will Cindy have to pay off during her three-year lease?

Answer
A
$1,389
B
$7,200
C
$15,680
D
$40,320

Explanation

Cindy pays off the portion of the car’s value that it loses during the lease. Subtract the residual value after three years from the original value: $56,000 − $40,320 = $15,680. Therefore, the amount she pays off is $15,680, choice C.

AI-written and checked against the verified answer.

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