The financing rate on a lease similar to the interest rate on a loan is called the _____.
A)lease point
B)residual rate
C)money factor
D)purchase option
E)capitalized cost

Question

Quizplus · Accepted Answer

The financing rate on a lease is known as a money factor. This is the equivalent of an interest rate on a loan for the purpose of calculating lease payments. A, B, D, and E are not accurate descriptions of the financing rate on a lease.

The Financing Rate on a Lease Similar to the Interest