Bob is thinking about leasing a car. The lease comes with an interest rate of 8%. Determine the money factor that will be used to calculate Bob's payment.

Money factor is an alternative way in solving leasing problems. money factor can be converted to annual percentage rate (APR) and vice versa.

APR = 2400 x money factor

so money factor can be solve using

money factor = APR / 2400

money factor = 8% / 2400

money factor = 0.0033333