Fame purchases and then leases small aircraft to intereste parties. The Co is currently determing the required rental for a small aircraft that cost them $860,000 if the lease is for 20 years and annual lease payments are required to be made at the end of each year What will be the annual rental if Fame wants to earn a return of 10% How much cheaper would each lease payment be annually if rents were paid at the start of each year? Present answer as positive number 4300 is my answer is that correct
Fame purchases and then leases small aircraft to intereste parties. The Co is currently determing the required rental for a small aircraft that cost them $860,000 if the lease is for 20 years and annual lease payments are required to be made at the end of each year
What will be the annual rental if Fame wants to earn a return of 10%
How much cheaper would each lease payment be annually if rents were paid at the start of each year? Present answer as positive number
4300 is my answer is that correct
thank you
Brenda
A lease refers to a contract whereby under which one party agrees to rent a property to another party for a specific time in return of specific lease amount. It is a contract between a lessor and a lessee. Lessee uses the property owned or managed by the lessor.
Formula for Lease Payment = ,where A is asset value to be financed, i is lease interest per period ,n is number of lease payments required.
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