Mel is buying a scooter priced at $7879.00. She can lease the scooter for $198.80 monthly for 4 years with a residual value of 25%
After 4 years, the residual value of the scooter would be 25% of the original price, which is $7879.00 * 0.25 = $1969.75.
Over the 4 year lease period, Mel would pay a total of $198.80 * 12 months * 4 years = $9547.20 in lease payments.
Adding the residual value to the total lease payments, Mel would pay a total of $9547.20 + $1969.75 = $11516.95 over the 4 year period.
Therefore, Mel would pay a total of $11516.95 for leasing the scooter for 4 years.