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CRCM Exam - Question 40


In a motor vehicle lease, a mathematical progression showing how the periodic payment is derived, containing the following information:

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Correct Answer: D

In a motor vehicle lease, it is essential to provide a mathematical progression showing how the periodic payment is derived, which includes the gross capitalized cost (the agreed-on value of the vehicle), the rent charge (the difference between the total of base payments over the lease term minus the depreciation and any amortized amounts), and an itemization of other charges that are part of the periodic payment. This comprehensive approach ensures transparency and helps lessees understand how their payments are calculated, encompassing all elements from A, B, and C.

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Cam22
Sep 15, 2024

In a motor vehicle lease, disclosing a mathematical progression that includes the gross capitalized cost, the rent charge, and an itemization of other charges that are part of the periodic payment is essential. This comprehensive approach ensures transparency and helps lessees understand how their periodic payments are derived, encompassing all elements from A, B, and C