Richard leased equipment worth $35,000 for 9 years and will own it outright at the end...

Question

Question

business finance

Answer 1

Answer #1

1.

Calculating Monthly Lease Payment,

Using TVM Calculation,

PMT = BEG[PV = 35,000, FV = 0, N = 108, I = 0.0653/12]

PMT = $427.11

2.

APR(monthly) = 12[(1 + 0.042/2)1/6 - 1] = 4.1637%

Calculating Loan Amount,

Using TVM Calculation,

PV = [FV = 0, PMT = -700, N = 168, I = 0.041637/12]

PV = $89,003.14

Answer 2

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