(AICPA)3. An office equipment representative has a machine for sale orlease. If you buy the machine, the cost is P7,596. If you leasethe machine, you will have to sign a non-cancelable lease andmake 5 payments of P2,000 each. At the time of the lastpayment you will receive title to the machine. The firstpayment will be made on the first day of the lease. Theinterest rate implicit in this lease is approximatelya. 10%(AICPA)b. 12%c. Between 10% and 12%d. 16%

Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…

Answered: * An office equipment representative…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

A real estate broker decides to lease a car for 36 months. Suppose the annual interest rate is 7.8%, the negotiated price is $48,000, there is no trade-in, and the down payment is $3,000. Find the monthly lease payment (in dollars). Assume that the residual value is 48% of the MSRP of $51,800.
A company lease equipment for 7 years. The equipment cost 28,000 and the owner wants to earn 9.5 percent on the lease. What should be the required lease payments?
An industrial engineering consulting firm signed a lease agreement for simulation software. Calculate the present worth in year 0 if the lease requires a payment of $30,000 now and amounts increasing by 5% per year through year 7. Use an interest rate of 10% per year.
A vehicle can be purchased by paying $18,000 now, or it can be leased by paying $515 per month for the next three years, with the first payment due on the day of signing the lease. What nominal annual rate of interest compounded monthly is charged on the lease?
Please help me ......
Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machine has a cash price of $800,000. Benning wants to be reimbursed for financing the machine at a 12% annual interest rate over the five-year lease term. Required: 1. Determine the required lease payment if the lease agreement calls for 10 equal semiannual payments beginning six months from the date of the agreement. 2. Determine the required lease payment if the lease agreement calls for 20 equal quarterly payments beginning immediately. 3. Determine the required lease payment if the lease agreement calls for 60 equal monthly payments beginning one month from the date of the agreement. The present value of an ordinary annuity factor for n 5 60 and i 5 1% is 44.9550.
Auto Leasing Inc. leases an automobile with a fair value of $40,000 to a customer over a four year period with payments due annually. The first payment is due on the first day of the lease. What is the annual lease payment if Auto Leasing Inc. desires a rate of return of 10% ? Note: Do not use a negative sign with your answer. $ 0
domebo Corporation has entered into a 7 year lease for a piece of equipment. The annual payment under the lease will be $3,400, with payments being made at the beginning of each year. If the discount rate is 14%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)
You just leased a Honda Civic that sells for $25,350. The terms of your lease require you to make 60 payments of $310 per month with the first payment due the day the car was leased. At the end of 5 years you would have to pay $11,862 to buy the car. What effective rate are you paying on the car lease? 5.46% 5.38% 31.87% 5.51% 5.60%
Kyle secured a lease on a machine by paying $2,000 as a down payment and then $700 at the beginning of every month for 5 years. The lease rate was 5.75% compounded monthly. a. What was the principal amount of the lease? Round to the nearest cent b. What was the cost of the machine? Round to the nearest cent c. What was the amount of interest paid over the term of the lease? Round to the nearest cent
A lease agreement valued at $33,000 requires payment of $4,300 every three months in advance. The payments are deferred for three years and month is worth 10% compounded quarterly.a. How many lease payments are to be made under the contract?b. What is the size of the final lease payment?

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