Mckoy Leasing leased a car to a customer. Mckoy will receive $225 a month, at the end of each month, for 72 months. Use the PV function in Excel® to calculate the answers to the following questions 1. What is the present value of the lease if the annual interest rate in the lease is 6%? 2. What is the present value of the lease if the car can likely be sold for $5,500 at the end of six years? 1. What is the present value of the lease if the annual interest rate in the lease is 6%? (Do not round intermediary computations, but round your final answer to the nearest cent.) The present value of the lease is $. 13,576.39 2. What is the present value of the lease if the car can likely be sold for $5,500 at the end of six years? (Do not round intermediary computations, but round your final answer to the nearest cent.) The present value of the lease is
Mckoy Leasing leased a car to a customer. Mckoy will receive $225 a month, at the end of each month, for 72 months. Use the PV function in Excel® to calculate the answers to the following questions 1. What is the present value of the lease if the annual interest rate in the lease is 6%? 2. What is the present value of the lease if the car can likely be sold for $5,500 at the end of six years? 1. What is the present value of the lease if the annual interest rate in the lease is 6%? (Do not round intermediary computations, but round your final answer to the nearest cent.) The present value of the lease is $. 13,576.39 2. What is the present value of the lease if the car can likely be sold for $5,500 at the end of six years? (Do not round intermediary computations, but round your final answer to the nearest cent.) The present value of the lease is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Mckoy Leasing leased a car to a customer. Mckoy will receive $225 a month, at the end of each month, for 72 months. Use the PV function in Excel® to calculate the answers to the following
questions
1. What is the present value of the lease if the annual interest rate in the lease is 6%?
2.
What is the present value of the lease if the car can likely be sold for $5,500 at the end of six years?
1. What is the present value of the lease if the annual interest rate in the lease is 6%? (Do not round intermediary computations, but round your final answer to the nearest cent.)
The present value of the lease is $. 13,576.39
2. What is the present value of the lease if the car can likely be sold for $5,500 at the end of six years? (Do not round intermediary computations, but round your final answer to the nearest cent.)
The present value of the lease is
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