Determine the monthly payment for a 36 month lease on a $26,000 car with a residual of 71% and an interest rate of 7.5%.

The residual value is 71% of $26,000, or $18,460. The monthly depreciation charge is ($26,000 − $18,460) ÷ 36 = $209.44. The monthly finance charge is ($26,000 + $18,460) × (7.5% ÷ 2400) = $138.94. Adding them gives $348.38 per month, choice D.

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