A Money Factor of 0

question 40

Multiple Choice

A money factor of 0.0028 on a lease is equivalent to an annual percentage rate of

• A)2.80.
• B)3.60.
• C)6.72.
• D)8.64.
• E)10.80.

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Definitions:

Breakeven Point

The financial state where total costs and total revenues are equal, meaning no net loss or gain is experienced by the business.

SCORE Chapter

A local branch of SCORE, a nonprofit association dedicated to helping small businesses get off the ground, grow, and achieve their goals through education and mentorship.

College

An educational institution or establishment, especially one providing higher education or specialized professional or vocational training.

University

An institution of higher education and research, which awards academic degrees in various disciplines.