Imagine you leased a piece of equipment for three years. The lease required payments of$10,000 per year, due at the end of each year. Calculate the present value of each payment ifthe interest rate is 10%. Complete the following table:Present Value of PaymentPayment$10,000$10,000$10,000YearYear 1 (end of this year)Year 2 (end of next year)Year 3 (end of the followingyear)What is the total present value of all three payments?

Year 1 payment = $ 10,000 Year 2 payment = $ 10,000 Year 3 payment = $ 10,000 Interest rate = 10%

Answered: Imagine you leased a piece of equipment…

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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Similar questions

Please answer with explanation. I will really upvote
A$66.000interest-only mortgage loan is made for 30 years at a nominal interest rate of 8 percent. Interest is to be accrued daily, but payments are to be made monthly. Assume 30 days each month. Required: a. What will the monthly payments be on such a loan? b. What will the loan balance be at the end of 30 years? c. What is the effective annual, rate on this loan?
Find the interest paid on a 3-year lease for a $26,765 car if the car depreciates at an annual rate of 10% and the lease has an annual interest rate of 4.8%.
b) A company is thinking of acquiring fixed assets worth TK. 10 million on financial lease for five years at an interest rate of 12%. The lease would be amortized over five years by equal annual installments. You are required to calculate annual installment and show how lease is amortized over five years if installment is paid at year end or at the beginning of the year.
How would I complete this?
You have just leased a car. The lease is for three years with monthly payments due at the beginning of the month. The APR on the lease is 6%. If the present value of the lease is $12,000, what is the monthly payment on the lease? Please round your answer to four decimal places.
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.
Compute the monthly payments on a 2-year lease for a $26,532 car if the annual rate of depreciation is 18% and the lease's annual interest rate is 4%. Round your answer to the nearest dollar.
Complete the following from the first three lines of an amortization schedule for the following loan:You borrow $ 210000 with an annual interest rate of 6.25% over 20 years Starting principal = $ 210000New balance after month 1 payment = New balance after month 2 payment = New balance after month 3 payment =
1. Suggest you are going to lease a car with an MSRP of $30 000. The manufacturer has set a residual of 60% for a 3-year lease. The dealer has agreed to a selling price of $28 000, and there's a rebate of $500 from the manufacturer. Also you will have a $1 700 advance payment and the lease carries an interest rate of 9% per year. How much would your monthly pretax lease paymentsbe? Manufacturer's Suggested Retail Price MSRP USD 30,000.00 Negotiated sales price NSP USD 28,000.00 Lease Term LT month 36.00 Residual persentage RP dec. 0.60 Advance payment AP USD 1,700.00 Rebate R USD 500.00 Interest Rate APR % 9.00 Calculate the following 1. Calculation of Depreciation fee: Net capitalized cost NCC USD 25,800.00 Residual Value RV USD 18,000.00 Depreciation over lease term Dt USD 7,800.00 Depreciation charge (monthly) D USD 216.67 2. Calculation of Finance fee (Rent charge): Money factor MF - 0.003750 Finance fee (monthly) F USD 164.25…
JJJ is renting a storefront. The lease is for 6 years, and the monthly rent is $3,000 until the lease ends. The first payment is due today. Calculate the present value of the entire stream of payments if the APR is 8%, continuously compounded.
For the following loan, calculate the monthly payment and then complete the partial amortization schedule for the first three months. A home mortgage of $161,000 with a fixed APR of 3% for 30 years. Round all final answers to the nearest cent as needed. a) The monthly payment including principal and interest would be $ b) Complete the partial amortization table for the mortgage. End of.. Month 1 Month 2 Month 3 Interest Payment Toward Principal $ Outstanding Balance GA

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