Henry is at the end of a three-year lease for his car. His leasing company says that his car is currently worth 12 dollars comma 780 , a 72% residual value. Determine the original MSRP of Henry’s leased car.

The car’s value at the end of the lease is 72% of its original MSRP, so let the MSRP be x and solve 0.72x = $12,780. Dividing gives x = $12,780 ÷ 0.72 = $17,750, so the original MSRP was $17,750, choice A.

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