Please help A lease of $7,200 had to be repaid with payments of $375 at the beginning of everyquarter. The interest rate charged was 10.00% compounded quarterly.a. How many payments are required to repay the debt?It will take0 payments.Rounded up to the next paymentb. What is the size of the final payment?$0.00Round to the nearest cent

Lease is a kind of contract by which one party lease its asset to another in return of periodic…

Answered: A lease of $7,200 had to be repaid with…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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Similar questions

Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Suppose a firm which wants to purchase a piece of machinery borrows $10,000 to be repaid inive equal payments at the end of each of the next 5 years, and the interest rate is 15%, calculatehe annual payments associated with the repayment of this debt. Please finish the table below.lease round to 2 decimal places.
The value of a 7 year lease that requires payments of $550 made at the beginning of every month is $43,800. What is the nominal interest rate compounded monthly? _____% (Round to two decimal places)
a loan of 25,000 has the following terms. the nominal interest rate is 8% compounded monthly; there will be n payments of 489.9 each starting at the end of the first month; and there will be one larger payment at the end of n+1 months. immediately after the 18th payment, the borrower refinances the loan with a new 24 month loan with a nominal 4.5% rate compounded monthly. the first payment is due one month after refinancing. what is the new monthly payment?
A $13,000 loan is to be amortized for 10 years with quarterly payments of $414.98. If the interestrate is 5%, compounded quarterly, what is the unpaid balance immediately after the sixthpayment? (Round your answer to the nearest cent.)
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?
A lease valued at $21,000 requires payments of $1,763 at the beginning of every three months. If money is worth 5% compounded quarterly, what is the size of the final lease payment?
A business loan is amortized constantly through 35 monthly rents, if the first rent is L 8,850 and the rate is 18% compounded by months. What is the value of the credit if before starting the 35 constant amortization rents you make 10 payments of L 5,000.00. Make the amortization table in its first 10 lines and the last 5. How much is the total interest generated?. do the exercise in excel
A $17,000 loan is to be amortized for 10 years with quarterly payments of $621.45. If the interest rate is 8%, compounded quarterly, what is the unpaid balance immediately after the sixth payment? (Round your answer to the nearest cent.)
Compute the monthly payments on a 2-year lease for a $28,929 car if the annual rate of depreciation is 15% and the lease's annual interest rate is 3.5%. Round your answer to the nearest dollar
Your company must make a $500,000 balloon payment on a lease 2 years and 9 months from today. You have been directed to deposit an amount of money quarterly, beginning today, to provide for the $500,000 payment. The account pays 4% per year, compounded quarterly. What is the required quarterly deposit? Note: Lease payments are due at the beginning of the quarter.

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