Home / Assignment Help / The depreciation component of a lease payment is _____. a. to compensate the leasing company for the monetary value the car loses during your lease b. interest you pay on the money the lease company has invested in your car during your lease c. the sum of your first and final lease payments, designed to make driving the car off the lot more affordable d. an additional amount added to the value of the car to say “thank you” to the lease company for their services

The depreciation component of a lease payment is _____. a. to compensate the leasing company for the monetary value the car loses during your lease b. interest you pay on the money the lease company has invested in your car during your lease c. the sum of your first and final lease payments, designed to make driving the car off the lot more affordable d. an additional amount added to the value of the car to say “thank you” to the lease company for their services

The depreciation component of a lease payment is “to compensate the leasing company for the monetary value the car loses during your lease”.

Lease payments have two segments: depreciation and interest. The depreciation partition takes care of the depreciation expense of the hardware over the rent term.  

The depreciation part is determined as the underlying parity on the rent, which is the balanced promoted cost, short the end estimation of the rent, which is the leftover esteem, isolated by the term of the rent. The depreciation part may be known as the “depreciation charge” or just “depreciation.”

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