A contract has been signed to lease a property at P250,000 per year with an annual increase of 25,000 for 6 years. Payments are to be made at the end of each year. The effective rate is 5%. *** Type only the letter of the correct answer. PA is equal to: a. P 1,082,369.17 PG is equal to: a. P 286,483.78 b. P 1,268,923.02 b. P 205,922.91 c. P 49,254.37 c. P 299,199.84 What lump sum paid today would be equivalent to the 6-year lease-payment plan? a. P 969,723.17 b. P 1,515,814.87 c. P 1,288,292.09 d. P 1,229,331.08 d. P 14,959.99 d. P 1,568,122.86

A contract has been signed to lease a property at P250,000 per year with an annual increase of 25,000 for 6 years. Payments are to be made at the end of each year. The effective rate is 5%. *** Type only the letter of the correct answer. PA is equal to: a. P 1,082,369.17 PG is equal to: a. P 286,483.78 b. P 1,268,923.02 b. P 205,922.91 c. P 49,254.37 c. P 299,199.84 What lump sum paid today would be equivalent to the 6-year lease-payment plan? a. P 969,723.17 b. P 1,515,814.87 c. P 1,288,292.09 d. P 1,229,331.08 d. P 14,959.99 d. P 1,568,122.86

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

MWANJOMBE Limited entered into a four year lease on 1 January 2022 for a machine. Rentals are TZS 20,000,000 p.a payable in advance. MWANJOMBE Limited incurs initial direct costs of TZS 5,000,000. The rate of interest implicit in the lease is 10%. Machine has a useful life of five years. REQUIRED Prepare extracts from financial statements for the year ended 31st December 2022 - 2025
Please answer only question B, because I sent already A in a separate question. Thank you! a) The following payments are agreed for the purchase of a property at the nominal annual interest rate of 0.8%:- 100,000 euros on 01.01.2022- 50,000 Euro on 01.07.2022- 200,000 euros on 01.03.2023 What is the value of these payments on the valuation date 01.01.2022 with1. linear interest calculation?2. monthly interest at the relative interest rate?3. relative mixed interest?4. continuous interest calculation? b) On 01.01.2022, EUR 347,942.42 is paid into an account at 0.8% annual interest. At On which date (day.month.year) in 2022, the year 2022 has 365 days, will the value of the interest rate, does the value of the deposit exceed 350,000 euros for the first time?
Smart Ltd negotiated a lease on the following terms: the lease had a 3 year term; the purchase price of the new equipment was R41 250; there were 3 annual payments of R15 000 payable in advance; and Smart Ltd was able to borrow at 10% per annum. The balance sheet liability figure at the end of the second year would be Select one: O a. R13 750 O b. R15 000 O c. R12 250 O d. R15 000
HI Tutor Answer please
Need Help with this Question
Bha
please show the solution
A contract between two parties (company X & Y) was created such that in return for services rendered, company X would provide payments of $15,000 in 8 months, $35,000 in 16 months, and $40,000 in 24 months. However, a clause was inserted in the contract that allowed company X to pay two equal lump sum payments in months 30 and 36. If interest on the contract is 6.5% compounded annually, determine the value of the lump sum payments that should be written in the contract. When entering your answer, round your values to two decimal places, and use a $ symbol as well as the correct comma separator. For example $12,345.67 Answer: Answer
A property is currently leased for $100,000 p.a. with fully recoverable outgoings. The lease has 3 years to run on the current (fixed) rent. The market rent for the property is $120,000. What is the current value of the property subject to the lease at a yield of 8% ? Assume rents are paid annually in arrears.