LEASE RATE
The interest rate; payment made in a certain period indicated in the lease contract for renting an asset like a property or an automobile. The lease rate the lessor earns from allowing an individual to use the asset compensates him or her for not being able to use the property in something else during the lease term.
In real estate, the lease rate is equal to amount per square foot of space per year; while in an automobile lease, it is based on the car’s anticipated depreciation and residual value, as well as the lease rate, which is expressed in percentage.
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