How to Convert Lease Factor to Interest Rate

What is the formula to convert lease factor to interest rate?

If the lease factor is given as 0.00065, what interest rate is that equivalent to?

a) 0.065%

b) 0.65%

c) 1.56%

d) 5.2%

Answer:

1.56%

When converting lease factor to interest rate, you can use a simple formula. The interest rate is calculated by multiplying the lease factor by 2400. In this case, the lease factor is 0.00065.

Interest rate = 0.00065 * 2400 = 1.56%