How does one figure out the interest rate on leases?
(White Plains ,NY)
For example;.0034 X 2400 = 8.16. How and where does these #'s come from?Answer:
Honestly, I'm not exactly sure how or where the 2400 comes about, but it is the standard. It would probably be similar to why does PI = 3.14? I personally don't know, but I know it's the standard and somewhere out there is an answer for it.
I even tried to research this a little for you and was not able to find anything that explained specifically why 2400 is the number or how it was derived.
Just keep in mind that when converting a lease money factor to an APR interest rate multiply by 2400, and when converting from an APR interest rate to a lease money factor divide by 2400 and you'll have an accurate number.
Sorry I couldn't be more specific,