Dasun is willing to purchase a machine under a 4 years-lease agreement as he does not have enough money in his hand. The value of the machine today is 500,000. The annual interest rate is 14%. A fixed installment should be paid at the end of every year for the next 4 years. Draw the loan amortization schedule for the 4 years, and mention what would be the periodic payment on this lease?
Dasun is willing to purchase a machine under a 4 years-lease agreement as he does not have enough money in his hand. The value of the machine today is 500,000. The annual interest rate is 14%. A fixed installment should be paid at the end of every year for the next 4 years. Draw the loan amortization schedule for the 4 years, and mention what would be the periodic payment on this lease?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Dasun is willing to purchase a machine under a 4 years-lease agreement as he does not
have enough money in his hand. The value of the machine today is 500,000. The annual
interest rate is 14%. A fixed installment should be paid at the end of every year for the
next 4 years.
Draw the loan amortization schedule for the 4 years, and mention what would be the
periodic payment on this lease?
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