Bob is thinking about leasing a car. The lease comes with an interest rate of 8%. Determine the money factor that will be used to calculate Bob’s payment.

To convert the lease interest rate to a money factor, divide the annual percentage rate by 2,400. For an 8% rate, 8 ÷ 2,400 = 0.00333 (rounded), so the money factor is 0.00333, choice C.

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