The formula to calculate the leasing rate is:
\[ LSR = \left( \frac{LV}{AP} \right) \times 100 \]
Where:
The leasing rate is the percentage of the lease value relative to the total amount paid. It is a useful metric for understanding the cost efficiency of a lease agreement.
Let's assume the following values:
Using the formula to calculate the leasing rate:
\[ LSR = \left( \frac{10,000}{50,000} \right) \times 100 = 20 \% \]
The leasing rate is 20%.