Calculate the MP for a lease (annuity due) for $125,500 with terms 6%, 5 years.
(a) Payments are made at the beginning of each month and the Expected Salvage Value is zero
(b) Salvage Value is now $25,000
*show steps*
Annual payment = cost of machine/PVIF(r,n) | |||
(a) | |||
Year | Installment | PV factors | Principal component |
0 | 125500 | 1 | 125500 |
1 | 125500 | 0.943396 | 118396.2 |
2 | 125500 | 0.889996 | 111694.6 |
3 | 125500 | 0.839619 | 105372.2 |
4 | 125500 | 0.792094 | 99407.75 |
Total | 560370.8 | ||
(b) | |||
Year | Installment | PV factors | Principal component |
0 | 125500 | 1 | 125500 |
1 | 125500 | 0.943396 | 118396.2 |
2 | 125500 | 0.889996 | 111694.6 |
3 | 125500 | 0.839619 | 105372.2 |
4 | 125500 | 0.792094 | 99407.75 |
salvage value | 25000 | 0.792094 | -19802.3 |
Total | 540568.4 | ||
Calculate the MP for a lease (annuity due) for $125,500 with terms 6%, 5 years. (a)...
Calculate the MP for a lease (annuity due) for $125,500 with terms 6%, 5 years. (a) Payments are made at the beginning of each month and the Expected Salvage Value is zero (b) Salvage Value is now $25,000
Calculate the monthly loan payment (MP) given a 6 %, 5 years with monthly compounding. The loan is for $125,500. a. Calculate MP (ordinary annuity): b. Calculate the Loan Balance after 3.5 years: c. Calculate the MP as an annuity due:
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