Henry is at the end of a three-year lease for his car. His leasing company says that his car is currently worth $12,780, a 72% residual value. Determine the original MSRP of Henry’s leased car. a.$9,201.60 b.$5,633.80 c.$17,750.00 d.$45,642.86

Currently the car is worth $12,780. This is 72% of the original price. Therefore, we get the following:

72 % = $12,780
1 % = 12,780 / 72
100% = 12780 / 72 * 100 = $17,750

Hence, your answer is C. $17,750