Given, the signing cost of leasing a convertible includes the title and license fee. The signing cost is $1599.
The monthly lease payments is $700 per month. We know that there are 12 months in a year.
There are 12000 miles allowed per year where the overage charge is $0.12 per mile. But here any miles not given where we can get the overage charge.
Now let's take the number of months the lease last be x months
The total lease cost given $18,400.
We can write the equation as,
[tex] 18400 = 1599 +700x [/tex]
Wehave to move 1599 to the other side by subtracting it from both sides.
[tex] 18400-1599=1599+9840x-1599 [/tex]
[tex] 16801 = 700x [/tex]
We can find x by moving 700 to the other side. We can move 700 to the other side by dividing it to both sides. We will get,
[tex] \frac{16801}{700} = \frac{700x}{700} [/tex]
[tex] 24 = x [/tex] ( by taking the nearest whole number)
So we have got the required answer.
The lease lasts for 24 months.
