1. **State the problem:** Calculate the monthly lease payments for a car with a sticker price of 47000, lease term of 60 months, interest rate of 3.2%, and buyout price of 20000, with no down payment. 2. **Formula used:** The monthly lease payment can be calculated using the formula for a lease payment: $$\text{Monthly Payment} = \frac{\text{Capitalized Cost} - \text{Residual Value}}{\text{Lease Term}} + \frac{(\text{Capitalized Cost} + \text{Residual Value}) \times \text{Money Factor}}{1}$$ Where: - Capitalized Cost = Sticker Price = 47000 - Residual Value = Buyout Price = 20000 - Lease Term = 60 months - Money Factor = Interest Rate / 2400 (since 3.2% annual rate is converted to money factor by dividing by 2400) 3. **Calculate the money factor:** $$\text{Money Factor} = \frac{3.2}{2400} = 0.0013333$$ 4. **Calculate depreciation portion:** $$\frac{47000 - 20000}{60} = \frac{27000}{60} = 450$$ 5. **Calculate finance charge portion:** $$ (47000 + 20000) \times 0.0013333 = 67000 \times 0.0013333 = 89.33$$ 6. **Calculate total monthly payment:** $$450 + 89.33 = 539.33$$ 7. **Final answer:** The monthly lease payment before tax is **$539.33**. This calculation assumes no down payment and uses the money factor derived from the interest rate as per standard lease calculations.