Cost of Automobile = $22,657
Monthly Lease Payments = $449
Number of payments = 60
Let monthly interest rate be i%
$22,657 = $449 * PVAD of $1 (i%, 60)
PVAD of $1 (i%, 60) = 50.4610245
Using financial calculator, i = 0.607%
Monthly Interest Rate = 0.607%
Annual Interest Rate = 12 * 0.607%
Annual Interest Rate = 7.3%
of 17.()You plan to lease a Saab automobil e that sells for $22,657 and has no...
You receive a $35,000 car LEASE at 6% nominal annual for 60 months. Interest is compounded daily and you make monthly payments. Your Residual value at the end of your lease is $15,000. Assume LEASE payments are made at the BEGINNING of the month, (first payment due immediately). What is your monthly LEASE payment?
Calculate all of the problems in the document below in an Excel spreadsheet or on a financial calculator. Please show your work in order to get credit. For each problem, state the inputs given, what you are being asked to find (the missing input), and then use the Finance function to get the correct answer (if using Excel).17. If you invest $17,500 per year for 17 years (all payments made at the beginning of each year), you will have accumulated...
Red Sun Rising Corp. has just signed a lease for its new manufacturing facility. The lease agreement calls for annual payments of $1,500,000 for 10 years with the first payment due today. If the interest rate is 3.41 percent, what is the value of this liability today? $13,606,971.83 $13,282,996.31 $11,905,105.65 $12,959,020.79 $12,531,690.16
Exercise 15-22 e and tions @ ration 7,036 A capital lease agreement for equipment requires Granger Transport Ltd. to make 10 annual payments of $40,000, with the first payment due on January 2, 2017, the date of the inception of the lease. The present value of the nine future lease payments at 10 percent is $230,360. Required 1. Calculate the present value of the lease at 5 percent if your instructor has taught present value. 2. Journalize the following lessee...
Chunga and Company trade in golf clubs. They sale the clubs either through cash or through a lease facility with their clients. You have recently started playing golf and want to lease a set of golf clubs from Chunga and Company. The lease contract is in the form of 24 equal monthly payments at a 10.4 percent stated annual interest rate, compounded monthly. Because the clubs cost K3, 500.00 retail, Chunga wants the present value of the lease payments to...
Red Sun Rising Corp. has just signed a lease for its new manufacturing facility. The lease agreement calls for annual payments of $1,450,000 for 30 years with the first payment due today. If the interest rate is 3.39 percent, what is the value of this liability today?
Sandhill, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $304152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Sandhill, Inc.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Sandhill, Inc.) is 7%. Assuming that this lease is properly classified as a...
32 You plan to buy a car that has a total "drive-out" cost of $24,700. You will make a down payment of $3,458. The remainder of the car's cost will be financed over a period of 4 years. You will repay the loan by making equal monthly payments. Your quoted annual interest rate is 9% with monthly compounding of interest. (The first payment will be due one month after the purchase date.) What will your monthly payment be? $616.88 $524.67...
Determine Car Lease Payments: The term of the lease is 5 years, for 60 monthly payments. The current value of the car is $100,000, and the residual value at the end of year 5 is $42,000. 1.) The annual interest rate (APR) on the lease is 3.0%. Assuming you do not put down any money upfront, what is the monthly lease payment? Please list the formula. 2.) If there is an upfront sales tax of $4,640 you have to pay,...
Direct Financing Lease (Lessor) • Caterpillar signed a lease arrangement for an equipment with Sterling Corporation on 1/1/17 on the following terms: • Lease term is 5 years, non-cancellable, requiring annual payments of 25,981.62 at the beginning of each year (annuity due). • The equipment has a fair value of 100,000 on 1/1/17, useful life of 5 years, and no residual value • Sterling pays all executory costs to third parties except for 2,000 in property taxes that is included...