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Money Factor Background: A Mathematical Proof
 Notations C: The total loan amount. In the case of an auto lease, this is the car price. F: The residual value. r: The monthly interest rate. If the annual interest rate is R%, the monthly interest rate r is R/1200. N: The term, or the number of months of a lease. P: The monthly payment.
The monthly payment formula for a lease is given by:

When and , one can write:

Using the above expression, the average interest paid per month can be written as:

Since , one can rewrite the average interest payment as:

Hence, the Money Factor can be used to conveniently and reliably estimate the average interest rate on loans.

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Injection Molding Design Guide

Guide for high quality and cost-effective plastic injection molding.

STEM Career Outlook

Wages, employment opportunities, and growth projections for STEM jobs.

Essentials of Manufacturing

Information, coverage of important developments and expert commentary in manufacturing.

CNC Machining Design Guide