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

A residual value of 72% means the car’s current value is 72% of its original MSRP. Divide $12,780 by 0.72: $12,780 ÷ 0.72 = $17,750. The original MSRP was $17,750, which is choice C.

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