Aside from depreciation, you’ll also pay a finance charge. Fortunately, rates are pretty low these days. Here is the formula for calculating the monthly finance charge:

In this example, let’s imagine that the money factor is .00100, which is equivalent to 2.4% APR. When we apply this number to the formula, we get a monthly finance charge of $51 per month:

($30,000 + $21,000) * .00100 = $51

ok so this is where I got lost. I get fully get the cap cost(68,706 and resi value 45,651.20). They talk about a formula…I don’t get the formula. What is the * and what does it mean. And what do I do with the * ?. I can add, subtract, and divide thats about it. I hate not understanding math…

The reason I didn’t put multiply down is because that was my first thought as to what it was, lol…and used multiplication with the formula and I got 754$ when plugging in the MF of .00100. Which seemed right to me.

Turns out I had it right from the beginning but talked myself into being wrong because I goggled what the * means in math and it came up with “to the power of” and I was like oh no please anything but this “to the power crap”

So looks like I should be more confident in my math ways as I was right all along. Damn google…

Now I feel better but dumb in a different way, LOL!

Don’t worry about it @Kevin949, this is the place to ask questions. People here will help you if you put the effort in! So what is this $754/mo car you are getting?