6. 'You are about to sign a new lease. It requires payments of $650 at the beginning every month for 8 years. a. What is the value of the lease contract if the cost of borrowing is 5.25% compounded semi- annually? Explain solution in words Work SETTING ON I/Y PMT PV FV CALCULATOR BGN or END P/Y C/Y b. How much interest is paid during this lease? Work Accrued Interest

6. 'You are about to sign a new lease. It requires payments of $650 at the beginning every month for 8 years. a. What is the value of the lease contract if the cost of borrowing is 5.25% compounded semi- annually? Explain solution in words Work SETTING ON I/Y PMT PV FV CALCULATOR BGN or END P/Y C/Y b. How much interest is paid during this lease? Work Accrued Interest

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A contract requires lease payments of $700 at the beginning of every month for 4 years. a. what is the present value of the contract if the lease rate is 6.39% compounded annually? b .what is the present valaue of the contract if the lease rate is 6.39 % compounded daily? [ i need a and b]
3. A contract requires lease payments of $800 at the beginning of every month for 4 years a. What is the present value of the contract if the lease rate is 3.50% compounded annually? b. What is the present value of the contract if the lease rate is 3.50% compounded monthly? Kindly add all the decimals DO NOT ROUND
How would you calculate a lease payment under IFRS 16? 3-year lease, $600 payments due at the end of every month of the lease term, 6% borrowing rate. What would the first month expense be? Ch 5, question 13. International accoutning
A contract requires lease payments of $800 at the beginning of every month for 6 years. a. What is the present value of the contract if the lease rate is 3.50% compounded annually? Round to the nearest cent b. What is the present value of the contract if the lease rate is 3.50% compounded monthly? Give typing answer with explanation and conclusion
You are thinking of leasing a Toyata Rav 4The price of the Toyata Rav 4 is $51,640. You have $8.950 for a down payment. The term of the lease is Six years, and the interest rate is 6.61% compounded Semi-Monthly The buyout on the lease is 41% of its purchase price(note: this is the price before the down payment is subtracted) and it is due at the end of the term if the customer wishes to keep the vehicle. What is the Residual Value in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places) What is the Present Value? (Do not round intermediate calculations and round your final answer to 2 decimal places.) What are the Semi-Monthly lease payments? (Do not round intermediate calculations and round your final answer to 2 decimal places
A contract requires lease payments of $900 at the beginning of every month for 5 years. a. What is the present value of the contract if the lease rate is 5.50% compounded annually? b. What is the present value of the contract if the lease rate is 5.50% compounded monthly?
Alternative Calculation of Monthly Lease Payment: FV PV (1+ i)N 1 LP = 1 (1+i)N-A i + A where LP – monthly lease payment; PV – the present value of the future payments on the lease, including the residual value, i.e. it is a lease amount; FV – the future value of leased asset or its residual value; N- the lease term (number of months); A - the number of payments to be paid in advance (0,1,2,...); i- monthly interest rate (i = APR÷12). The formula presented above can be used for any payment frequency. Just be sure that N is the number of periods and į is the interest rate per period.
A contract requires lease payments of $800 at the beginning of every month for 6 years. a. What is the present value of the contract if the lease rate is 4.25% compounded annually? $0.00 Round to the nearest cent b. What is the present value of the contract if the lease rate is 4.25% compounded monthly? $0.00 Round to the nearest cent
A contract requires lease payments of $700 at the beginning of every month for 5 years. a. What is the present value of the contract if the lease rate is 3.25% compounded annually? Round to the nearest cent b. What is the present value of the contract if the lease rate is 3.25% compounded monthly?
3. the information below relates to a sales type lease in which lease payments are made semiannually at the beginning of each period Lease term Lessor's desired rate of return Lesse's incremental borrowing rate Current fair market value of leased asset 5 years 12% per year 10% per year $600,000 Based on the information above, calculate the amount of the semi-annual payment as determined by the lessor.
Q5: A contract requires lease payments of $700 at the beginning of every month for 5 years.a. What is the present value of the contract if the lease rate is 3.25% compounded annually?Round to the nearest centb. What is the present value of the contract if the lease rate is 3.25% compounded monthly?Round to the nearest cent
A tenter with S 1189.08 has a one year lease. The landlord is willing to accept two payment options. )S 1169.08 now, or i)S 100 at the beginning of each month for twelve months What nommal annual interest rate compounded monthly would be required for the two options to have the same present value? Annual nominal interest rate = %?

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