A construction company agreed to lease payments of $425 76 on construction equipment to be made at the end of every three months for 3 25 years Financing is at 4% compounded quarterly (a) What is the value of the original lease contract? (b) I due to delays, the first 6 payments were deferred, how much money would be needed after 7 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 7 payments? (d) If the lease were paid off after 7 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 6 payments?
A construction company agreed to lease payments of $425 76 on construction equipment to be made at the end of every three months for 3 25 years Financing is at 4% compounded quarterly (a) What is the value of the original lease contract? (b) I due to delays, the first 6 payments were deferred, how much money would be needed after 7 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 7 payments? (d) If the lease were paid off after 7 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 6 payments?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A construction company agreed to lease payments of $425.76 on construction equipment to be made at the end of every three months for 3.25 years. Financing is at 4%
compounded quarterly
(a) What is the value of the original lease contract?
(b) II, due to delays, the first 6 payments were deferred, how much money would be needed after 7 payments to bring the lease payments up to date?
(c) How much money would be required to pay off the lease after 7 payments?
(d) If the lease were paid off after 7 payments, what would the total interest be?
(e) How much of the total interest would be due to deferring the first 6 payments?
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