A vehicle is advertised with beginning - of-month lease payments for 78 months at 6.9%compounded monthly. The terms of the lease specify that the vehicle price is $35, 400 with aresidual value of $15,804. A $5,390 down payment is required. What monthly lease paymentis required?

The monthly payment that is paid by the lessor to the lessee for using the property of the lessor is…

Answered: A vehicle is advertised with beginning…

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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The toyota motor company is advertising a 24 month lease of 2014 camry for $189 payable at the beginning of each month. The lease requires $2,399 down payment plus first month payment. No security deposit is required. Lessee pays maintenance, excess wear and tear, and $0.18 per mile over 12,000 miles per year. Lease-end purchase option is $17,784 and lease payments total $4,536. A disposition fee of $350 is due at lease-end. Assuming an interest rate of 6% compounded monthly, what is the total cost of leasing if you put 40,000 miles at the end of lease?
A local car dealer is advertising a standard 24-month lease of $900 per month for its new XT 3000 series sports car. The standard lease requires a down payment of $3,700, plus a $800 refundable initial deposit now. The first lease payment is due at the beginning of month 1. In addition, the company offers a 24-month lease plan that has a single up-front payment of $29,200, plus a refundable initial deposit of $800. Under both options, the initial deposit will be refunded at the end of month 24. Assume an interest rate of 6% compounded monthly. With the present-worth criterion, which option is preferred? The present worth of the standard lease option is $ (Round to the nearest dollar.)
ok nt ences A finance lease agreement calls for quarterly lease payments of $7,056 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 12%. Both the present value of the lease payments and the cost of the asset to the lessor are $168,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second quarterly payment on October 1? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a partial amortization table up to the October 1 payment. Note: Enter all amounts as positive values. Round your answers to the nearest whole dollar. Date July 1 July 1 October 1 Lease Payment Effective Interest Decrease in Outstanding balance balance Required B >
Compute the monthly payments on a 3-year lease for a $29,128 car if the annual rate of depreciation is 19% and the lease's annual interest rate is 3.8%. Round your answer to the nearest dollar. Compute the interest paid on a 2-year lease for a $29,372 car if the annual rate of depreciation is 12% and the lease's annual interest rate is 4.9%. Round your answer to the nearest dollar.
6
A lease agreement that qualifies as a finance lease calls for annual lease payments of $26,269 over a six-year lease term (also the asset's useful life with the first payment at January 1, the beginning of the lease. The interest rate is 5% FV of $1 PV of $1 FVA of PVA of $1, FVAD of $1 and PVAD of $t) (Use appropriate factor(s) from the tables provided.) 1 Required: a. Complete the amortization schedule for the first two payments b. If the lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable? Complete this question by entering your answers in the tabs below. Required A Required B Complete the amortization schedule for the first two payments. (Enter all amounts as positive values.) Lease Payment Effective Interest Decrease in Outstanding Date 01/01/2016 01/01/2016 01/01/2017 Balance Balance Required B >
A lease valued at $21,000 requires payments of $1,763 at the beginning of every three months. If money is worth 5% compounded quarterly, what is the size of the final lease payment?
Honda is selling a 2014 Accord Coupe Ex M tor $30056.90 including freight, PDI and all applicatble fees. The lease payment of S382 is due at the beginning of each month. If the interest rate compounded annually is 3.99% and the residual value is S13 200, determine the size of the final lease payment
2.
A local car dealer is advertising a standard 24-month lease of $1,150 per month for its new XT 3000 series sports car. The standard lease requires a down payment of $4,500 plus a $1,000 refundable initial deposit now. The first lease payment is due at the end of month 1. Alternatively, the dealer offers a 24-month lease plan that has a single up-front payment of $30,500 plus a refundable initial deposit of $1,000. Under both options, the initial deposit will be refunded at the end of month 24. Assume an interest rate of 6% compounded monthly. With the present-worth criterion, which option is preferred?
A lease valued at $18,000 requires payments of $1,813 at the beginning of every month. If money is worth 6% compounded monthly, what is the size of the final lease payment? The size of the final payment is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The following information relates to an equipment lease with an inception date of January 1: Fair value of equipment at lease inception, $56,000 Lease term, 5 years Economic life of property, 6 years Implicit interest rate, 7% Annual lease payment due on December 31, $13,200 The equipment reverts back to the lessor at the end of the lease term. How much is recorded as the lease liability on the lease inception date? Select one: a. $66,000 b. $56,000 c. $57,911 d. $54,123

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A vehicle is advertised with beginning - of - month lease payments for 78 months at 6.9% compounded monthly. The terms of the lease specify that the vehicle price is $35, 400 with a esidual value of $15,804. A $5,390 down payment is required. What monthly lease payment 5 required?