Sam leases a car for 24 months. The car will cost him $7,000 if he decides to buy it at the end of the lease. What term describes the $7,000? . A. interest. B. residual value. C. lease amount
The correct answer for the given question above would be option B. The term that describes the $7,000 in the given situation above is the residual value. Residual value is defined as the amount you can buy the car for at the end of the lease once he decides to buy it.
